Local buyers lift stock index back to 7,700

The local stock barometer sprang back to the 7,700 level on Friday as local investors took heart from the positive Philippine sovereign credit outlook from global credit watchdog Standard & Poor’s alongside optimism on a historic North-South Korean summit.

The main-share Philippine Stock Exchange index (PSEi) racked up 103.6 points or 1.36 percent to close at 7,721.02.

All counters ended higher, led by holding firms, which gained 2.66 percent. The industrial and mining/oil counters both added more than 1 percent while the financial, services and property counters also firmed up.

Papa Securities said the increased likelihood of a credit-rating upgrade from S&P following the “positive” outlook might be a positive catalyst for the market. “Recall that Fitch upgraded our credit rating last December 2017, which assisted the PSEi’s advance from 8,400 to 9,000,” the brokerage said.

Total value turnover amounted to P7 billion. There were 124 advancers that edged out 69 decliners while 52 stocks were unchanged. Local investors supported the PSEi’s rebound as foreigners were still net sellers to the tune of P744.73 million for the day.

The PSEi was led higher by Meralco, which surged by 6.22 percent, while its parent conglomerate Metro Pacific advanced by 5.47 percent. Ayala Corp. added 3.23 percent.

Joseph Roxas, president of Eagle Equities, said there might be bargain-hunting among institutional investors.

SM Investments, Metrobank and JG Summit all added more than 2 percent, while SM Prime and GT Capital both gained more than 1 percent.

URC, BDO, Puregold and Jollibee ended with modest gains.

Outside of the PSEi, notable gainers included Vitarich (+5.47 percent) and Eagle Cement (+1.7 percent).

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