Local stocks firm up on Wall Street rally

The local stock barometer firmed up on Thursday as investors took their cue from the historic surge in US stocks overnight.

The local stock barometer gained 32.65 points, or 0.44 percent to close at 7,482.66, tracking mostly higher regional markets.

Local stockbrokerage Papa Securities said the PSEi had been expected to rise following record-shattering gains in Wall Street.

Overnight, US stocks saw their strongest rally since 2009 on signs of improved US consumer spending. The Dow Jones Industrial Average surged by 1,086.25 points, or 4.98 percent.

However, Papa Securities added that the US markets might “remain highly volatile in the near term and will continue to provide headwinds to Philippine shares.” Heavy resistance remains at 7,600 for the PSEi, it said.

Local investors were the key drivers of the PSEi’s rise. On the other hand, there was net foreign selling of P328.3 million.

The PSEi was led higher by the industrial counter, which gained 1.07 percent. The holding firm and mining/oil counters also gained.

On the other hand, the services and property counters slipped.

Value turnover for the day amounted to P5.16 billion. Many investors are on a holiday mode ahead of the New Year turnover holiday.

There were 113 advancers that edged out 82 decliners, while 40 stocks were unchanged.

The country’s largest lender BDO rose by 2.13 percent, while SM Investments, Jollibee, BPI, JG Summit, Meralco, Aboitiz Power and Metro Pacific all added more than 1 percent.

SM Prime was the day’s most actively traded company. It advanced by 0.99 percent. URC also contributed modest gains.

Several second-liners were also actively traded. D&L Industries rose by 2.67 percent, while retailer Vista Land rose by 1.92 percent. Wilcon Depot added 1.61 percent.

On the other hand, Ayala Land and Metrobank both declined by more than 1 percent, while Ayala Corp., Aboitiz Equity Ventures and Globe Telecom all slipped.