PSEi rallies past 7,200

The local stock barometer rallied to the 7,200 level on Friday, returning to positive territory for the year, as European Central Bank (ECB) stimulus hopes perked up global markets.

The Philippine Stock Exchange index (PSEi) gained 118.6 points or 1.87 percent to close at 7,236.38, gaining for the fourth straight session. For the whole week, the PSEi advanced by a total of 180.64 points or 2.6 percent.

Stock markets across the globe were lifted by the ECB’s statement that it was “open to the full menu of monetary policy” to perk up the euro zone.

In a research note on Friday, Citigroup said: “ECB’s dovish stance at (Thursday’s) policy meeting raises expectations of an easing action at the December meeting. Risk assets cheered this dovish ECB signal.”

At the local market, there were twice as many advancers (119) as there were decliners (56) while 40 stocks were unchanged. Value turnover for the day stood at P8.1 billion.

All counters firmed up, led by the services and mining/oil counters, which rose more than 2 percent.

International Container Terminal Services Inc. led the PSEi higher, rising by 5.31 percent. The international port operator’s Mexican unit Contecon Manzanillo S.A. de C.V. (CMSA) has signed a $260-million project finance facility with International Finance Corp. (IFC), Inter-American Development Bank (IADB), Standard Chartered Bank and KfW Ipex Bank. The money is for the development and operation of a specialized container terminal at the Port of Manzanillo in Manzanillo, Mexico, which will have a capacity of 2.2 million TEUs (20-foot equivalent unit) when completely built.

Philippine Long Distance Telephone Co., BDO Unibank and Energy Development Corp. were all up by more than 3 percent. Universal Robina Corp., SM Prime, Megaworld and Semirara gained more than 2 percent while SM Investments Corp., Ayala Corp., BPI and JG Summit all rose by more than 1 percent. Doris Dumlao-Abadilla