Share prices close higher

Philippine stocks Thursday surged, bringing the measure closer to the 7,200 level. But analysts remained cautious as they noted challenges here and abroad, which had not yet been factored into domestic valuations.

The benchmark Philippine Stock Exchange index rose 1.10 percent, or 77.68 points, to close at 7,170.99, while the broader all-shares index increased by 0.86 percent, to P4,225.46. There were 103 gainers against 70 decliners, while 40 issues were unchanged.

The gain comes as the US Federal Reserve finally ended an asset purchase program, citing improving employment figures.

Jonathan Ravelas of BDO Unibank Inc. Thursday said that other domestic factors were keeping investors optimistic, like corporate earnings and low commodity prices. But he noted that the strengthening of the US economy could cap gains in equities here.

Ravelas noted that the 7,200 was a key resistance level for the PSEi.

BDO is keeping its year-end forecast of 7,000 for the PSEi, he added.

HSBC Global Asset Management yesterday reported that local equities are already overpriced.

“HSBC believes that the equity market is currently over-valued, with near term challenges not fully priced in, and thus does not present opportunities to investors,” it said.

A total of 12.4 billion shares changed hands, valued at P7.62 billion. The most actively traded stock was Philippine Long Distance Telephone Co., which declined by 1.33. It was followed by Ayala Land Inc. (up 1.53 percent) and BDO Unibank Inc. (up 0.10 percent). Miguel R. Camus