Philippine stock index gains 18 points amid jitters

MANILA, Philippines—The local stock exchange extended gains on Thursday as jitters over the weaker-than-expected second quarter domestic economic growth report card were offset by favorable manufacturing indicators from the US and China that kept global risk appetite buoyant.

The main-share Philippine Stock Exchange index added 18.09 points or 0.42 percent to finish at 4,366.59.  The index gains were tempered by profit-taking on the high-flying mining/oil counter particularly Lepanto, which will be stricken out of the PSEi by September 12.

Property and services, on the other hand, kept the index buoyant as their respective indices rose by 1 percent.

Turnover was higher at P6 billion from the previous day’s P4.9 billion.

Despite the overall index gain, there were nearly as many decliners (66) as advancers (66), which suggested that large-cap stocks and soon-to-be index stocks were the flavors of the day.

PLDT, AGI, SM Investments, Megaworld, Ayala Land, Metrobank, Banco de Oro, Ayala Corp., Aboitiz Power and First Gen led the index higher.  San Miguel Corp. and Semirara Mining, which will join the PSEi starting September 12, also edged higher.  Vista Land and Cyber Bay also gained in heavy trade.

Lepanto “A” (open only to local investors) was down by 8 percent to P1.48 per share while Lepanto “B” (open to both local and foreign investors) likewise dropped by 5.8 percent to P1.61 per share.

EDC, BPI and Boulevard also ended in the red.

Overnight, the Dow Jones Industrial Index was up by 53.58 points or 0.46 percent to 11,613.53.  The four-day run-up has allowed the Dow to climb back to positive territory for the year.  Optimism was boosted by news about a surge in factory orders in US and China which brought good tidings to the rest of the world.