Stocks rise on profit prospects

Local stocks surged Friday as investor optimism over prospective second-quarter corporate results prevailed over global jitters on the prolonged US debt ceiling debates.

The main-share Philippine Stock Exchange index rose 20.83 points or 0.46 percent to finish at 4,503.63. Month-end window-dressing also aided the local market, which stood resilient to another weak session in Wall Street overnight.

The index is now nearing the record high of 4,517.77 recorded last July 20. It has now surged 303.63 points or 7.2 percent since the start of 2011.

All sectors were up except for the high-flying mining/oil counter, which succumbed to profit-taking.

Overnight, the Dow Jones industrial index was down 62.44 points or 0.51 percent to 12,240.11 as the Republicans put off a crucial vote to raise the US debt limit, a legislation needed to avert a debt default.

At the local market, there were 82 advancers and 59 decliners while 47 stocks were unchanged.

Banco de Oro, Alliance Global, PLDT, Ayala Land, SM Investments, Robinsons Land, Philex, BPI and Security Bank led the index higher. Non-index stock Basic Energy was also up in active trade.

On the other hand, the PSEi’s gains were trimmed by the profit-taking on DMCI, Aboitiz Power, URC and Megaworld.  There was likewise profit-taking on Semirara and East Asia Power.

Value turnover at the PSE amounted to P4.5 billion. Foreign investors helped boost the market as there was P340 million in net foreign buying for the day.  Doris C. Dumlao

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