Philippine stocks rise on hopes of eurozone fiscal resolution

MANILA, Philippines—Local stocks reopened with an upbeat mood on Tuesday, allowing the main index to spring back to the 4,300 level, as Europe worked on the next tranche of financial aid for debt-strapped Greece.

The main-share Philippine Stock Exchange index extended last Friday’s rebound, gaining 42.95 points, or 1 percent, to finish at 4,314.67. Sentiment firmed up as a European Central banker shared the view that the eurozone may put behind its fiscal woes in “one or two years at the latest.”

The local market was closed on Monday.

Tuesday’s upswing was led by the property sector, whose counter surged by 2.5 percent. Only the financial sector ended in the red, albeit its decline was marginal.

An overnight rebound on Wall Street also spilled over buoyant sentiment to the local equities market. Risk-taking in Asian markets, however, was tempered by jitters over the formation of a new coalition government in Greece and the rising political unrest in Rome. Risk premium on Italian bonds, meanwhile, widened ahead of a Parliamentary voting on budget reforms.

Nevertheless, investors were encouraged by news that Greece would get the latest tranche of financial assistance as long as its main political parties commit to the economic reforms required by the bailout package.

The Dow Jones Industrial Index gained 85.15 points, or 0.71 percent, to 12,068.39 overnight, overcoming a rough opening, as Wall Street took heart from an ECB board member’s favorable outlook on fiscal resolution in the Eurozone over the foreseeable future.

Value turnover at the local market was light at P3.38 billion. There were 74 advancers, which outnumbered 50 decliners; 46 stocks were unchanged.

The index was led higher by PLDT, SMC, Megaworld, SMIC, BDO, ALI, SM Prime, MPIC, AGI, DMCI, Belle, Meralco, Philex and Aboitiz Power.

Puregold, Security Bank and LR also edged higher.

On the other hand, URC, EDC and Metrobank capped the PSEi’s ascent.