Philippine stocks continue to climb

MANILA, Philippines—Local stocks firmed up Wednesday as investors welcomed news that the Italian prime minister would step down and that China’s inflation was easing.

The main-share Philippine Stock Exchange index added 31.53 points, or 0.73 percent, to 4,346.20, likewise supported by a good stream of local third-quarter corporate earnings.

The upswing was led by the property and industrial counters, which gained 1.29 percent and 1.19 percent, respectively. However, the day’s gains were tempered by the decline of the services and mining/oil counters.

Local stocks reflected buoyant Asian markets that, in turn, were aided by news that Italian Prime Minister Silvio Berlusconi—widely seen as a key stumbling block to much-needed reforms to stabilize Italy’s fiscal position—promised to quit once a new budget was passed.

“With both beleaguered Greek and Italian leaders heeding the public’s calls, focus can now fully shift back to the economy as political tensions somewhat ease,” said Accord Capital Equities Corp. trader Justino Calaycay Jr.

A decline in China’s inflation rate for October also added to the favorable market sentiment.

At the local market, Calaycay said corporate earnings have been generally positive for listed firms, with most entities showing decent year-on-year profit expansion.

Calaycay said the index would continue to make attempts to break past the 4,330 resistance while support was seen at the 4,270-4,300 band.

Value turnover at the local bourse amounted to nearly P4 billion. There were 85 advancers that edged out 59 decliners while 41 stocks were unchanged.

Among the stocks that gained in heavy trade were Belle, Jollibee, MPIC, Ayala Land, EDC, Metrobank, Security Bank, AEV, IPVG, Zeus, Meralco, URC, LR and AGI.

On the other hand, PLDT, Puregold, Lepanto, ICTSI and SMC closed lower.