MANILA, Philippines—The local stock index on Thursday snapped out of a two-day slump as investors turned optimistic over reports that private bondholders in Greece would approve a crucial debt deal.
As investors were also encouraged by an upbeat US private jobs report, which cheered up Wall Street overnight, the main-share Philippine Stock Exchange index recouped 34.83 points, or 0.71 percent, to finish at 4,956.19.
This came about as investors continued to exercise caution on trading shares of index heavyweight PLDT, which earlier reported a sharper-than-expected decline in 2011 profits.
All counters on Thursday firmed up except for services, which was weighed down by PLDT.
PLDT’s share price dipped by 0.3 percent to P2,752 a share.
On the other hand, among those that contributed to the rebound of the Philippine Stock Exchange index were AP, MPIC, Metrobank, AGI, SMC, EDC, Meralco, Megaworld, AEV, Semirara, ICTSI and BPI.
Other stocks that gained on heavy volume, although not part of PSEi, were Dizon, Lodestar, Security Bank, NiHao and Philodrill.
Meanwhile, DMCI and Petron were among the stocks that bucked the day’s upswing.
In developed markets, sentiment improved on rising optimism of reaching the Greek private sector initiative (PSI) deal, said investment bank Credit Agricole CIB.
“Risk assets [will] benefit from the improved sentiment, but investors may still choose to be cautious ahead of a slew of events in developed markets,” Credit Agricole said.
On Wall Street, US stocks likewise returned to positive territory on news that the United States’ private sector added more jobs than expected last month.
The information was based on a report by payroll processor ADP that private employers quickened the pace of hiring in February.
US stocks were also perked up by a report that the United States Federal Reserve may be considering a new type of mortgage and bond-buying program.
The Dow Jones industrial average added 78.18 points, or 0.61 percent, to finish at 12,837.33 on Wednesday.—Doris C. Dumlao