Property stocks lead ‘Santa Claus rally’ at local bourse
MANILA, Philippines—The main-share Philippine Stock Exchange index went up for a fourth straight session on Wednesday, aided by an improved global risk appetite alongside year-end window-dressing and selective equities positioning for 2012.
The PSEi added 26.7 points or 0.61 percent to finish at 4,368.88, led by the property counter which gained 1.6 percent.
The “Santa Claus rally” which usually occurs at yearend has started, said Eagle Equities president Joseph Roxas. “This will likely continue through next week and even through January, which is traditionally very strong for equities.”
Roxas said the index gains were even tempered by some profit-taking. But he said the bias was still for an upside and that the next index resistance is at around 4,400.
The market will likely draw support form quarter-end and yearend window-dressing as well as stock picking for the coming year, Roxas said.
Turnover amounted to P5.2 billion.
There were 100 advancers versus 54 decliners while 41 stocks were unchanged.
Only the industrial counter traded in the red.
The index was led higher by BDO, Digitel, ICTSI, SM Investments, BPI, Megaworld, AGI, AEV, Belle, SMC and Ayala Corp. LR also gained in heavy volume.
On the other hand, there was profit-taking on PLDT, EDC, Metrobank, Aboitiz Power, ALI and URC. Shares of Lepanto A (for local investors) also dipped.
The local market sentiment also improved on the back of upbeat Wall Street trading overnight and similarly buoyant regional markets. The Dow Jones Industrial Index rallied by 337.32 points or 2.87 percent to 12,103.58 on Tuesday on news about favorable business sentiment in Germany as well as a better-than-expected outcome at a Spanish treasury bill auction.
