The local stock barometer rallied past the 7,500 level for the first time this year on Wednesday as foreign investors regained their appetite on Philippine stocks given rosy domestic economic prospects.
Following Tuesday’s breakout from the 7,400 barrier, follow-through buying boosted the main-share Philippine Stock Exchange index by 137.72 points or 1.85 percent to 7,584.21.
Apart from optimism that the country would sustain an economic growth of 7 percent, investors were also emboldened by a global stock market upswing.
Foreign investors were net buyers in the PSE amounting to P1.25 billion for the day, picking up local blue chips.
“Philippines stocks continued to surge for a third straight day with the The Dow Jones Industrial Average closed up 39.03 points, or 0.2 percent, at 20,689.24. However the most telling sign was the government’s optimism with National Economic and Development Authority’s projection of 7 percent year-on-year growth in first quarter GDP (gross domestic product),” said Luis Gerardo Limlingan, managing director at Regina Capital Development.
“On a purely technical standpoint, the PSEi has broken new ground this year, finally piercing through the 7,400 level and investors are anticipating a higher trading range,” he said.
For many months, the PSEi had been locked within the 7,100 to 7,400 trading range. However, rosy GDP prospects allowed the index to break out of the resistance level on Tuesday.
On Wednesday, all counters ended higher, led by the financial and property counters which respectively surged by 2.08 percent and 2.83 percent. These two sectors typically track economic cycles.
Value turnover for the day amounted to P10.77 billion. There were 111 advancers that edged out 75 decliners while 48 stocks were unchanged.
Infrastructure holding firm Ayala Land and Metro Pacific led the PSEi higher, respectively rallying by 5.74 percent and 5.09 percent.
Investors also loaded up on shares of SM Investments, URC and Megaworld which all surged by over 4 percent.
Metrobank and PLDT were both up by over 3 percent while BDO and Security Bank advanced by over 2 percent.
SM Prime, GT Capital, Semirara, Ayala Corp. and BPI all gained over 1 percent while ICTSI, Jollibee and Globe also contributed gains.
Outside the PSEi, much-battered cement-maker Cemex rebounded by 6.27 percent.
On the other hand, JG Summit fell by 4.19 percent while DMCI also slipped by 0.85 percent.