Foreign investors snap up local stocks as PSEI hits 7,200

The local stock barometer surged to the 7,200 mark on Thursday, tracking upbeat trading in the US and regional markets and buoyed by renewed foreign buying of local equities.

The main-share Philippine Stock Exchange index racked up 178.49 points or 2.54 percent to close at 7,209.44, boosted by investors’ positioning strategies for the year alongside favorable developments on the domestic fiscal front.

Joseph Roxas, president of Eagle Equities Inc., said the first quarter of the year was typically strong as fund managers take to their respective investing positions.

Foreign investors have resumed their buying spree, he said.

President Duterte’s decision not to sanction an increase in the Social Security System (SSS) pension also boosted investor interest, Roxas said.

“It shows he will listen to economic managers and shows he is aware of repercussions (of populist moves). Even though this was a campaign promise, this shows that he will take advice from economic managers,” Roxas said.

“The realization is: what was a campaign promise won’t necessarily become real when he sits in office and sees actual situation,” he added. An increase in the SSS pension payout without a corresponding increase in contribution is seen to shorten the actuarial life of the state-owned pension fund.

At the local market, foreign investors were also net buyers for the fifth straight session.  Net inflows for the day amounted to P728 million.

All counters gained significantly, led by the holding firm counter which rose by 3.06 percent.  The financial, mining/oil and property counters also surged by over 2 percent each.

Value turnover for the day amounted to P10.28 billion.

There were 146 advancers that edged out 55 decliners, while 32 stocks were unchanged.

The PSEi was led higher by Security Bank, which surged by 8.91 percent after being the most actively traded stock for the day.

Investors also picked up shares of Ayala Corp. and Jollibee, which both advanced by over 3 percent; while Ayala Land, BDO Unibank, Metrobank, JG Summit and BPI gained over 2 percent.