Philippine stocks reach new high at past 5,200
MANILA, Philippines—The local stock index soared to a fresh all time-high on Wednesday, closing past 5,200 for the first time, on the back of upbeat sentiment on Wall Street and excitement from the latest gas exploration results in Recto Bank (also known as Reed Bank).
The main-share Philippine Stock Exchange index rallied by 35.24 points, or 0.69 percent, to finish at 5,204.84. The index also marked a new intra-day peak of 5,226.54.
“The possibility of natural gas findings in Recto Bank means this may solve the power crisis in the country,” said Manny Cruz, chief strategist at Asiasec Equities. “This created confidence in the market.”
After this breakout, Cruz said the next immediate resistance for the index would be at 5,270.
“There’s positive sentiment for most of the Asian region,” said PNB Securities deputy chief Manny Lisbona.
The regional markets also took their cue from the closely watched Dow Jones industrial average, which advanced by 74.39 points, or 0.58 percent, to close at 13,001.56 overnight. Wall Street sentiment was upbeat on the stream of first-quarter US corporate earnings.
“Eyes will be watching the outcome from the US Federal Open Market Committee decision on key policies. The expectation is that the status quo will be maintained, thus funds will continue to flow into fundamentally stable markets such as ours,” Lisbona said.
Holding firms and mining/oil led the day’s gains respectively rising by 1.65 percent and 3.6 percent.
Value turnover was heavy at P8.71 billion, suggesting conviction to this upswing. There were 104 advancers, which edged out 69 decliners, while 40 stocks were unchanged.
An upbeat report on the oil exploration of UK-based Forum Energy in Sampaguita gas discovery in Recto Bank boosted the shares of Philex Mining (+8.28 percent) and its subsidiary Philex Petroleum, whose shares surged by 50 percent, the maximum daily price increase allowed in the exchange. Metro Pacific Investments shares also rose by 7.09 percent on a positive spillover effect from Forum Energy, which is controlled by Philex Petroleum, which is likewise part of the First Pacific group.
Based on the exploration results, the resources in Sampaguita—considered as a world-class discovery—may be much larger than originally anticipated.
DMCI Holdings also increased by 6.96 percent on expectations that it will be included in the May index rebalancing of MSCI.
Investors also gobbled up shares of AGI, Metrobank, Ayala Corp. and SM Prime.
Newly listed GT Capital was the day’s most actively traded stock, gaining 4.44 percent to close at a new record high of P513 per share.
Among the non-index stocks, Philodrill (+11.32 percent), FLI (+6.87 percent) and NiHao (+1.29 percent), Alaska Milk (+0.64 percent) also gained in heavy volume. Empire East was likewise an out-performer with its 13.85 percent after the company announced a stock rights offering and an increase in authorized capital stock.
