MANILA, Philippines – Most local stock prices went up Thursday as investors took heart from a much-improved sentiment in US and Europe.
The main-share Philippine Stock Exchange index racked up 41.52 points or 0.96 percent to finish at 4,356.73.
The Dow Jones Industrial Index rallied by 275.56 points or 2.47 percent to 11,414.86 Wednesday after a German court backed the country’s role in bailing out smaller, debt-strapped European nations while Italy approved a controversial belt-tightening measure.
The index was led higher by the property, holding firms and mining/oil indices, which surged by 2.37 percent, 1.57 percent and 1.69 percent, respectively.
Turnover was thin at P4.1 billion.
There were 95 advancers versus 47 decliners.
Lepanto “A” (open to foreign investors) led the day’s gainers alongside SM Prime, Metrobank, SM Investments, Lepanto “B” (open only to local investors), DMCI, EDC, URC, ALI, AGI and Metro Pacific Investments. ORE and Dizon Mines likewise traded higher.
On the other hand, Boulevard, BPI, Philex, PLDT and First Gen traded in the red.
“Over the near-term, the markets will remain sensitive to day-to-day developments, knee-jerking both ways albeit admittedly with a stronger bias for the negatives. Positive news are met with heightened cynicism –understood in the context of an extended bearish sentiment worsened by the slow recovery of the US economy and lingering threats of a Europe-induced recession,” said Justino Calaycay Jr., a dealer at Accord Capital Equities Corp.
On a brighter note, Calaycay said the market’s ability to hold support levels was boosting bargain-hunters’ confidence that present valuations were promising moving forward.
“The index is seen to continue to move sideways, ranging between 3,300 and 3,400 until more clarity surfaces from the external front,” he said.