PH stocks up 2.43% on ‘favorable’ Greek poll results

A Filipino trader smiles during a lull in trading at the Philippine Stock Exchange in the financial district of Makati on Monday, June 18, 2012. The PH stock market was up sharply Monday after elections in Greece eased fears of global financial turmoil, but analysts warned that the economic crisis shaking the 17 nations that use the euro was far from over. AP PHOTO/AARON FAVILA

MANILA, Philippines—Local stocks rallied sharply on Monday after Greece voted into power a coalition government seen to accept the fiscal austerity measures that will keep the nation within the eurozone.

The main-share Philippine Stock Exchange index (PSEi) gained 119.78 points, or 2.43 percent, to finish at 5,050.41, reflecting the recovery in risk appetite across regional and global markets in the aftermath of the Greek elections last weekend.

“The rebound of the market is primarily due to the favorable result of Greece elections. Although it was a small margin of winning, I think what the market wants is for as long as it’s favorable (to bailout by European Union) as opposed to unfavorable position, regardless of the slight win, it shows a positive sentiment,” said Bede Lovell Gomez, assistant vice president at investment bank First Metro Investment Corp. (FMIC).

In a press briefing Monday, Gomez said that by yearend, the PSEi could hit 5,500. So far this year, the peak was about 5,300, which was hit in early May.

During the Greek elections last Sunday, voted into power was a coalition government that favors Greece to receive bailout and stay in the eurozone.

“This is a relief to the market. We’re not saying we’re out of the woods as the problem in Europe goes beyond Greece. But at least this takes one solution for one problem out in the market and so these other countries can now focus on other impending concerns, which are Italy and Spain and the other European banks,” Gomez said.

The fund manager said this development was positive for the Philippines. Beyond the European concern, Gomez expressed confidence that the Philippines could be resilient to global concerns in the second half.

FMIC’s outlook of sustained upswing toward the yearend, Gomez said, would be supported by the likelihood of good earnings results in the second quarter as well as end-of-semester window-dressing.

“But with or without window-dressing, the (local) market will sustain itself and the economic side will be favorable. We will see the market move to higher trajectory between now until the second half of July,” Gomez said.

The key themes that will excite the market this 2012, Gomez said, would be infrastructure, consumer, gaming and mining.

On Monday, all counters surged but the biggest gains were eked out by mining/oil (+3.42 percent), industrial (+2.51 percent), holding firm (+2.18 percent) and property (+2.31 percent). Value turnover amounted to P5.58 billion. There were 122 advancers that eclipsed 39 decliners while 28 stocks were unchanged.

Among the sharpest index gainers were SM Prime (+8.6 percent), AEV (+6.11 percent), URC (+4.27 percent), Globe (+4 percent), First Gen (+3.84 percent), Banco de Oro (+3.11 percent) and EDC (+3.06 percent).

Likewise contributing to the PSEi’s gains were PLDT, SMIC, AGI, Aboitiz Power, Metrobank, DMCI, Ayala Corp., BPI and Cebu Air.

The notable gainers among the non-PSEi stocks were Calata (+23.62 percent) and GT Capital (+2.95 percent).