Improving factory output spurs PSEi rally

A better manufacturing growth report prompted investors to buy up shares, allowing the Philippine Stock Exchange index (PSEi) to end in the green on Friday.

The benchmark PSEi climbed by 1.58 percent, or 104.37 points, to close at 6,692.65 while the wider All-Shares index rose 1.44 percent, or 50.49 points, to settle at 3,548.53.

Claire Alviar, Philstocks Financial Inc. assistant manager for research and online engagement, said the PSEi managed to return above 6,600 after the S&P Global Market Intelligence reported that the Philippines’ purchasing managers’ index (PMI) improved to 51.2 in August from 50.8 in July.

PMI is a gauge of manufacturing growth. An above-50 reading signals an expansion.

“However, market participation remains weak with a net market value turnover of P4.43 billion, lower than the year-to-date average of P6.29 billion,” she added.

Gainers

All sectors ended in the green, except for financials and mining and oil indices, which fell by 0.21 percent and 0.68 percent, respectively. Holding firms booked the most gains with a 2.99-percent increase.

About 1.02 billion shares amounting to P4.59 billion were traded. Advancers led decliners, 116 to 68, while 47 issues were unchanged.

BDO Unibank Inc., the most actively traded, declined by 2.07 percent to P127.80 per share.

Actives list

This was followed by Jollibee Foods Corp., up 2.50 percent to P245.80; Emperador Inc., up 4.98 percent to P20.85 after announcing its inclusion in the Straits Times Index; SM Prime Holdings, up 0.14 percent to P36.50; Converge ICT Solutions, up 2.05 percent to P17.88; and Union Bank of the Philippines, up 4.29 percent to P85.

Other active names were Universal Robina Corp., up 2.28 percent to P125.80; Ayala Land Inc., up 1.40 percent to P29.05; Aboitiz Equity Ventures, up 8 percent to P59.40 after announcing the takeover of Mactan Cebu International Airport; and SM Investments Inc., up 2.38 percent to P860.