PSEi upbeat as investors await developments on foreign front
The local stock barometer started the second quarter of 2017 on an upbeat note, tracking regional markets that mostly firmed up at the start of a busy week that awaits a highly anticipated meeting between President Xi Jinping of China and President Donald Trump of the US.
The Philippine Stock Exchange index (PSEi) gained 29.93 points or 0.41 percent to close at 7,341.65 as all counters ended higher.
“Markets enter the second quarter with several clouds having lifted. Sentiment is supported by solid economic data from across the world, despite the increased uncertainty about US tax reform and fiscal stimulus. The peaking of headline inflation readings adds further comfort that central banks are unlikely to rush to tighten financial conditions. Volatility is thus low and falling across the major asset classes, with upcoming event risks seen to be unlikely to derail the ongoing expansion,” Citigroup said in a research note. “This environment remains supportive for emerging markets (EMs), with portfolio allocations to EM likely to continue to expand.”
Citi said there were a lot of things for investors to focus on this week, the most crucial of which would be the Trump-Xi Jinping meeting on Thursday. “While guidance—including from the US president himself— suggests a conciliatory rather than confrontational tone at this first meeting between the two leaders, markets may nonetheless worry about potential disagreements or signal of deterioration in the relationship,” Citi said.
In addition, Citi said investors this week would peruse the minutes of the March Federal Open Market Committee and European Central Bank meetings and likewise await the US jobs data on Friday alongside the release of China’s March foreign exchange reserves.
At the local market yesterday, total value turnover for the day amounted to P6.24 billion. There were 99 advancers that edged out 81 decliners while 49 stocks were unchanged.
“Philippine markets got off to a fresh start in the second quarter and were undeterred that the major US stock averages ended the session lower on Friday,” said Luis Gerardo Limlingan, managing director at local stockbrokerage Regina Capital Development.
BPI led the PSEi higher with its 2.27-percent gain while SM Prime, Metrobank, Semirara and Megaworld all rose more than 1 percent.
SM Investments, ICTSI, PLDT, ALI and DMCI also contributed to the day’s gains.
One notable gainer outside the PSEi was logistics firm 2GO, which surged by 47.37 percent as the SM group’s buy-in deal boosted optimism on the logistics business.
Newly listed Wilcon Depot also continued to firm up, gaining 0.38 percent on its second day of trading. Bloomberry was up 1.51 percent on good earnings prospects for the gaming business.
On the other hand, URC, Metro Pacific, BDO, GT Capital, Jollibee and JG Summit all slipped.
GT Capital announced an increase in net profit last year by 21 percent to P14.6 billion, led by higher earnings from its automotive business, coupled with gains from the sale of its power generation unit.
Jollibee, for its part, announced plans to set up shop in Italy, entering the European market for the first time.
