PSEi back at 4,000 level

Local stocks on Friday rallied for a second straight session, bringing the main index back to the 4,000 level, on the back of the European Central Bank’s affirmation of support for the region’s banking system as well as upbeat US retail sales for September.

The main-share Philippine Stock Exchange index surged 118.74 points or 3.05 percent to finish at 4,009.26.

The main index thus recovered most of the losses incurred in the first three days of the week, ending a tad better than the 3,999.65 closing last week.

Value turnover amounted to P5.29 billion. There were 103 advancers as against 28 decliners while 44 stocks were unchanged. Foreign investors were still cautious on local equities, resulting in a modest P70 million in net foreign selling for the day.

All counters gained but the steepest rally was posted by holding firms (4.2 percent) and mining/oil (3.36 percent).

Investors snapped up shares of SM Investments, PLDT, Lepanto Mining, Metro Pacific Investments, San Miguel Corp., DMCI, SM Prime, Metrobank, Manila Mining, Banco de Oro, Ayala Land, Energy Development Corp., Universal Robina Corp., Security Bank, BPI, Alliance Global Inc., Aboitiz Power and Philex Mining.

Budget airline operator Cebu Air bucked the day’s upswing.

The local market reflected the upbeat trading in Wall Street overnight. The Dow Jones industrial index surged another 183.38 points or 1.68 percent to finish at 11,123.33 on Thursday.

Paul Joseph Garcia, senior vice president at Bank of the Philippine Islands, said that while it might be difficult for the index to retest the 4,550 high seen in August, a key support level at 3,720 was holding up well. “There’s a good chance that we’re bottoming out,” he said. Doris C. Dumlao