PSEi rises on improved global outlook

MANILA, Philippines — The local stock index swung back to positive territory on Wednesday as investors took heart from an improved global economic outlook that likewise buoyed most markets in the region.

The main-share Philippine Stock Exchange index added 39.04 points or 0.66 percent to close at 5,986.48,  still shy, however, of breaching a key barrier at 6,000. The index nevertheless offset Tuesday’s decline, which was partly caused by concerns over a higher Philippine inflation rate trajectory for 2014.

All counters ended favorably, led by the property sub-index, which gained 1.43 percent.

Dealers said there was a dearth of market-moving news and catalysts. Foreign selling exceeded foreign buying by P229 million.

“Foreign funds are still selling but it looks like savvy Philippine investors are picking up the good stocks that are cheap. We’re learning,” said Gus Cosio, president of mutual fund management firm First Metro Asset Management.

Turnover at the local market amounted to P5.52 billion. Despite the main index decline, there were slightly fewer advancers (78) than decliners (80).

Among the index stocks that gained in heavy volume were Gokongwei-led URC (+2.77 percent) and JG Summit (+2.62 percent) as the group’s aviation unit Cebu Air (+) finalized a deal to take over budget carrier Tiger Airways Philippines. FGEN was up by 3.48 percent.

Other blue chips PLDT, SM Prime, ALI and AC gained over 1 percent while BDO (mostly actively traded for the day) and MPI likewise contributed to the day’s PSEi rise.

On the other hand, ICTSI, Globe Telecom, Metrobank, BPI, AGI, Jollibee, Megaworld and Manila Water traded lower.

Across the region, markets were mostly higher ahead of the release of the US Federal Reserve’s minutes and an upgrade by the International Monetary Fund on global economic prospects.

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