The benchmark Philippine Stock Exchange Index (PSEi) staged a strong recovery above 7,000 on Friday as investors digested a slew of positive news.
By the closing bell, the PSEi was up 1.88 percent, or 130.75 points, to 7,083.34 while the broader all-shares index was up 1.31 percent, or 55.65 points, to 4,310.52.
The gain came as investors focused on lower oil prices, the stabilization of currencies across the region and the positive performance of Wall Street overnight, said Jonathan Ravelas, BDO Unibank Inc. chief strategist.
Moreover, he noted emerging markets have started to weaken almost 10 months ago, bringing equities down to attractive levels.
‘Storm has passed’
“It seems that valuations right now are at reasonable prices,” Ravelas said. External factors coupled with local economic prospects are leading investors to conclude that the worst was over and they could now focus on future growth opportunities.
“The storm has passed,” Ravelas noted. He said the near-term resistance was at 7,300 for the PSEi. By 2019, he expects it to trek higher to around 8,200.
Data from the PSE showed volume had picked up on Friday. A total of 699.7 million shares valued at almost P10 billion changed hands. There were 115 gainers against 65 decliners, while 47 companies closed unchanged.
Actively traded
Financials, property and holding firms were the biggest gainers at 3.27 percent, 1.8 percent and 1.54 percent, respectively. Only mining and oil closed lower with a 0.42 percent loss.
Property giant SM Prime Holdings Inc. was the most actively traded Friday as it gained 2.19 percent.
It was followed by Metropolitan Bank & Trust, up 0.72 percent to P70.30; Ayala Land Inc., up 2.21 percent to P39.35; San Miguel Food and Beverage, down 0.06 percent to P83.95; and Bank of the Philippine Islands, up 5.21 percent to P88.90 per share.