PSEi rallies to 7,400 level
THE LOCAL stock barometer rallied back to the 7,400 level on Wednesday as rising commodities and a favorable outlook on US economy boosted risk-taking across emerging markets.
The main-share Philippine Stock Exchange index racked up 107.23 points or 1.46 percent to close at 7,463.95.
The index ended higher for the third straight session, initially bouncing from last week’s bloodbath but now driven higher by improved risk appetite across the region. More investors now expect that the US economy is strong enough to hurdle any impending interest rate hike by June or July. This optimism was furled by upbeat US home sales data in April, which hit the highest level in over eight years.
“US equity investors decided last night that the better economic data coming through suggests that the economy can support a 25-basis points rise in early summer..Conversely, the oil price rallied on weaker supply rumblings and investors can expect more Fed speak to support a possible hike as three more officials speak (Thursday),” said Luis Gerardo Limlingan, managing director at stock brokerage Regina Capital Development.
There were 112 advancers that edged out 84 decliners while 39 stocks were unchanged. Value turnover for the day amounted to P7.65 billion.
The property counter led the PSEi higher, rising by 2.33 percent while the financial and holding firm counters all rose by over 1 percent. The industrial and services counters also modestly gained.
Only the mining/oil counter ended lower (-0.95 percent) for the period.
Property stocks ALI (+3.91 percent) and Megaworld (+3.08 percent) led the PSEi higher. MPI and GTCAP also gained over 2 percent each.
AC, URC, JG Summit, AEV, PLDT and Metrobank all advanced by over 1 percent while BDO, ICTSI and AP contributed to the day’s gains.
Notable gainers outside PSEi for the day included Cebu Air (+2.65 percent), which has benefited from cheap aviation fuel. Now also rose by 9.39 percent still on the back of a broadband business play.
On the other hand, SMIC and Jollibee ended slightly lower. Security Bank and DoubleDragon also both slipped on profit-taking.
