Philippine stocks up on decent Q3 corporate earnings

MANILA, Philippines—The local stock market firmed up on Tuesday as a decent stream of third-quarter Philippine corporate earnings helped soothe investors jittery over fiscal and economic prospects in Europe and the US.

The main-share Philippine Stock Exchange index staged a late-session recovery to close 6.86 points, or 0.16 percent, higher at 4,363.73.

The local index was supported by the gains of the property counter, which surged by 1.89 percent, led by companies controlled by real estate tycoon Andrew Tan. The financial and holding firm counters likewise closed in positive territory, helping to offset the decline of the industrial, services and mining/oil counters.

Value turnover amounted to P4.16 billion. Despite the overall index gain, the 70 advancers were outnumbered by 80 decliners while 37 stocks were unchanged.

Justino Calaycay Jr., a dealer at Accord Capital Equities Corp., noted that the local market was in the red for most of the session, tracking most Asian peers. While the index closed positively due to late-session buying, he observed that market breadth was still bearish.

He said the problems facing the US’ main economic allies and partners could pull the economy back into recession, citing a research released by the US Federal Reserve. “The disruption of supply chains in the aftermath of the Japan earthquake and tsunami and the further deterioration of Europe’s debt crisis may prove to be too heavy a burden for its own economy still struggling to rise from the ravages of the subprime crisis of 2008,” Calaycay said.

But Calaycay also cited an alternative view presented by Fed Dallas president Richard Fisher, who projected US growth going into next year, hinting at a “declining likelihood the central bank will need to ease further.”

Overnight, the Dow Jones Industrial Index was down by 74.7 points, or 0.61 percent, to 12,078.98, setting a gloomy mood for most Asian bourses on Tuesday.

At the local market, the day’s positive closing was supported by the gains eked out by Metro Pacific, AGI, Megaworld, ALI, Metrobank and BPI. Likewise gaining in active trade were Security Bank, Puregold, Nihao and GERI.

Stock traders said AGI, Megaworld and GERI—all controlled by Andrew Tan—attracted bargain-hunters as the group reported good nine-month profit results.