PSEi nears 7,300

The local stock barometer rallied closer to the 7,300 mark on Monday, tracking upbeat sentiment in Wall Street and regional markets.

The main-share Philippine Stock Exchange index gained 67.7 points or 0.94 percent to close at 7,294.40.

“Philippine markets got off to a green start as the (US) Dow (Jones Industrial Index) reclaimed 20,000 and the NASDAQ closed at a fresh record high (on Friday) after President Trump signed an executive order to scale back the 2010 Dodd-Frank financial-overhaul law,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.

A massive piece of financial reform legislation passed by the Obama administration in 2010 as a response to the financial crisis of 2008, the Dodd-Frank act spelled out measures meant to curb various risks in the U.S. financial system.

“A mixed (US) January jobs report – one that delivered stronger than expected payroll additions but also tepid wage growth also provided a tailwind for stocks,” Limlingan said, adding that this raised the possibility that the US Federal Reserve may not tighten policy in March.

Meanwhile, he noted that the surprise hike in interest rate by China’s central bank had little effect on overall market as the aimed to soak up liquidity will help bring some sense into the recent sharp run-up in highly leveraged sectors.

At the local market, all counters ended favorably led by the property counter which rose by 1.88 percent, except for the mining/oil counter which is hounded by a string of mining closure and suspension orders issued by the Department of Environment and Natural Resources.

Value turnover for the day amounted to P8.22 billion. Some 97 advancers edged out 91 decliners while 48 stocks were unchanged.

Megaworld led the PSEi higher with its 4.95 percent gain, followed by San Miguel, SM Prime and Universal Robina which all advanced by over 2 percent.

Ayala Land, Metro Pacific, PLDT and Semirara likewise traded over 1 percent higher while SM Investments, AGI and Ayala Corp. also contributed gains.

Outside of the PSEi, notable gainers included Philrealty, which surged by 36.36 percent. The property firm recently graduated from court-assisted corporate rehabilitation.

Arthaland also continued to perform well, rising by 21.74 percent as investors continued to scout for alternative property plays outside of the first-liners.

On the other hand, GT Capital slid by 1.93 percent while BDO and Metrobank both declined.

It was recently reported that 26 of BDO’s branches in Cebu may be padlocked due to the lack of permit. The bank is seen at odds with the incumbent mayor of Cebu City but the bank assured that since this was a local issue, this has no bearing on the bank’s overall operation.

Outside of the PSEi, Cebu Air fell by 1.04 percent.