PSEi rallies to 8,000 mark
THE LOCAL stock barometer closed above the 8,000 mark for the first time this year on Friday as better-than-expected China growth data buoyed regional markets.
The main-share Philippine Stock Exchange index gained 73.92 points or 0.93 percent to close at 8,030.06, extending its winning streak for the sixth straight session.
All counters surged as investors continued their buying binge. For the week, the PSEi gained a total of 258.54 points or 3.3 percent.
“While Asian markets, including ourselves, benefitted from positive news abroad, moving past the 8,000 level shows that investor confidence in our market remains high, and provides some early momentum as companies prepare to disclose their mid-year earnings results in the coming weeks,” PSE president Hans Sicat said.
The services counter led the PSE’s 1.73 percent rise. The sub-index was in turn boosted by PLDT’s 3.45 percent gain.
Total value turnover for the day amounted to P11.13 billion. Foreign investors continued to load up local stocks, bringing in P1.86 billion in net inflows for the day.
Article continues after this advertisementThere were 111 advancers that edged out 80 decliners while 43 stocks were unchanged.
Article continues after this advertisementInvestors gobbled up shares of ALI, SM, GTCAP, AC, Megaworld and AEV which all gained over 1 percent. ALI (1.75 percent) was the day’s most actively traded stock.
SM Prime, BPI, URC, Globe and BDO contributed modest gains to the index.
Outside of PSEi stocks, notable gainers included BHI (+12.5 percent) and retailer MRSGI (+4.54 percent).
On the other hand, LTG lost 1 percent while JG Summit also slipped.
Since the start of the year, the PSEi has now gained close to 17 percent.
Across the region, trading was mostly upbeat after China posted a year-on-year second quarter growth rate of 6.7 percent, outpacing market expectations.
“Better second quarter activity data confirmed stabilizing growth above the lows in second half of 2015, but it’s not a sign of structural turnaround,” investment house BofA Merrill Lynch said in a research note.
“In second half 2016, we see several macro headwinds arising, potentially to weigh on real growth,” Merrill Lynch added.
Citi agreed that real activity and trade data in June pointed to stabilization of growth in China.
“Looking ahead, we still expect H2 GDP growth at around 6.2 percent to 6.3 percent year-on-year given significant downside risks in second half. We expect monetary policy to remain accommodative and supportive to growth,” it said.
Citi said China was facing significant challenges in the second half, including declining private investment, rising inflationary pressure and renminbi depreciation expectations.
