PSEi breaches 7,300 mark

MANILA, Philippines–The local stock barometer climbed back to the 7,300 level on Monday as optimism on third-quarter local corporate results helped fuel the market’s return to a bull market.

The main-share Philippine Stock Exchange index (PSEi) rallied by 97.12 points, or 1.35 percent, to close at 7,312.85. Elsewhere in the region, trading sentiment was mixed amid news of sluggish China factory gauge.

All counters were up but the biggest gainer was the services counter, which rose 2.02 percent, led by index heavyweight PLDT’s 4.42-percent surge. The industrial and holding firm counters were likewise up by more than 1 percent.

Local stockbrokerage AB Capital Securities said in its weekly research note that the PSEi was on a “confirmed bullish breakout” as it breached the previous resistance of 7,160 and moved out of the downtrend that started last Sept. 25. It expected the 7,300 level to be retested in the coming weeks.

“Having entered into third-quarter earnings season, investors are now positioning ahead of possible positive surprises in the succeeding weeks,” AB Capital Securities said.

There were 98 advancers that beat 83 decliners while 47 stocks were unchanged. Value turnover for the day amounted to P7.66 billion.

Aside from PLDT, another strong performer was Metrobank, which gained 4 percent in anticipation of strong third-quarter results. Based on initial releases by peer banks, treasury earnings in the third quarter have significantly improved compared to the sluggish first semester.

URC was likewise a big gainer for the day, rising 3.76 percent. Conglomerates GT Capital, SM Investments and AGI likewise gained 1 percent.

Among non-PSEi stocks, the notable gainers were IS (+7.35 percent), Nickel Asia (+3 percent) and D&L (+4.38 percent).–Doris C. Dumlao