THE LOCAL stock barometer resumed its upswing to post another record high on Friday as the slump in global oil prices is making the Philippines more attractive to portfolio investors.
The Philippine Stock Exchange index added 42.29 points or 0.54 percent to close at 7,861.33. Across the region, trading was mostly buoyant due to an improved outlook on the European Union presented by the chief of the European Central Bank.
Locally, ample liquidity is keeping most stocks at high valuations.
“There are many foreign funds who want to have stocks from the Philippine market. The country (being a net oil importer) is a beneficiary of the fall in global oil prices so they are expecting better growth this year,” said Manny Cruz, chief strategist at local stock brokerage Asiasec Equities.
Cruz said an ongoing investors forum organized by investment bank UBS was anticipated to bring in more foreign flows through next week.
The day’s gains were led by the industrial counter, which rose by 1.03 percent while the financial, holding firm and property counters posted modest gains. The services and mining/oil counters faltered slightly.
Value turnover for the day amounted to P6.54 billion. Despite the PSEi’s gain, market breadth was negative as there were more decliners (91) than advancers (86) while 49 stocks were unchanged.
Selective buying of large caps supported the PSEi’s rise. One notable gainer was Metrobank which rose by 2.5 percent while URC and GTCAP both rose by over 1 percent. AC, BPI, ALI and Jollibee also contributed gains.
Outside of the PSEi, Lopez-led FPH (+4.39 percent) and Lopez Holdings (+2.23 percent) were among the notable gainers.
Cruz said the market was anticipating broadcasting firm ABSCBN to benefit from a surge in election spending ahead of the 2016 elections but were buying into parent conglomerate Lopez Holdings – whose valuation is lower – to get into such election spending play.
Other notable gainers were DNL (+3.31 percent) and PF (+1.47 percent). Manila Water rebounded by 0.56 percent after the previous day’s selldown arising from arbitration jitters.
The day’s most actively traded stock was MPI which tumbled by 3.77 percent while Megaworld also fell by 1.07 percent. ICTSI, PLDT and SMIC also slipped.