Stocks resume uptrend
Philippine stocks rose Thursday as investors stepped back into the market following a positive report on China’s trade expansion and a Wall Street rally overnight.
The benchmark Philippine Stock Exchange index (PSEi) was up 0.48 percent, or 33.42 points, to 6,937.21 while the broader all-shares index closed 0.43 percent higher at 4,156.6.
Property firms gained the most, with the subsector up 1.13 percent, data from the PSE showed. Only the financials subsector closed in the red.
Apart from positive sentiments abroad, reports that the Bangko Sentral ng Pilipinas may not raise interest rates in the next policy meeting gave investors some measure of comfort, said Joseph Roxas, president of stockbrokerage firm Eagle Equities Inc.
Low interest rates are a good sign for investors looking for higher yields and their money is usually funneled into the stock market and other investment instruments.
“We also had a good correction [on Wednesday] so this is just a resumption of that [uptrend],” Roxas said. He noted that the PSEi could move higher in the coming weeks to again test the key 7,000 barrier, ahead of the State-of-the-Nation Address of President Aquino on July 28.
Roxas said it was not unusual for the stock market to improve ahead of the closely watched address, where the President is expected to tout economic and social reforms over the last four years. Miguel R. Camus
