Local equities rose for the fifth session on Thursday, allowing the main stock index to breach the 5,300 mark on the back of improved foreign investor sentiment.
The main-share Philippine Stock Exchange index gained another 58.14 points, or 0.92 percent, to close at 6,352.76 despite the pullback in US stocks and the lackluster trade in markets throughout the region.
At the local market, all counters advanced led by the industrial and holding firm subindex, which gained over 1 percent.
“The market rally has been inspired by both local and foreign investors that are finally recognizing attractive valuations in the Philippine market, lower multiples especially after 2013’s significant decline, amid positive full-year 2013 earnings results and forward-looking forecasts for 2014 and beyond,” said Nisha Alicer of DA Market Securities.
“Investor confidence is being built up again after 2013 decline,” she said, noting that Philippine fundamentals remain intact.
Alicer said the market could pull back, particularly stocks that had led the market higher. As such, DA Market recommends a buy-on-dip strategy with support at breakout point of 6,200 and a major support at 6,000.
URC (+4.26 percent) led the day’s gainers. BDO, AGI and JG Summit and Jollibee all jumped by over 2 percent, while ALI, SMIC, BPI, Megaworld, DMCI, GTCAP and MPI also rose.
Outside the PSEi, notable gainers were Nickel Asia (+1.84 percent) and Cosco (+1.59 percent).
On the other hand, PLDT, SMPH, Metrobank, AC and Semirara succumbed to profit-taking.
DA Market expects a market attempt to breach the 6,500-6,600 level.
“However, we maintain that investors continue to trade the ranges,” Alicer said.
“Buy at supports of 6,000 and 6,200, and take profit at 6,400 and 6,600,” she said. Doris C. Dumlao