PH stocks rally to 8,200
The local stock barometer rallied to the 8,200 level for the first time since July as news of a potential breakthrough in US-China trade talks and the benign local inflation data emboldened investors.
The main-share Philippine Stock Exchange index (PSEi) racked up 157.03 points or 1.95 percent to close on Tuesday at 8,216.68, tracking upbeat regional markets.
This marked its best finish since closing at 8,272.18 on July 25 this year.
Foreign funds continued to flow into the local market, bringing in P1.22 billion in net foreign buying for the day.
“The US-China trade war looks like it’s getting resolved. October is over and inflation last month is low,” said Joseph Roxas, president of local stock brokerage Eagle Equities Inc.
To confirm a breakout, however, Roxas said the PSEi would need to next hurdle 8,400.
“The investor sentiment is improving as more and more investors are looking at strong earnings from companies and improving economic fundamentals. We may see a pullback in the next couple of days,” said Christopher Mangun, head of research at AAA Equities.
Mangun said 8,150 was now the PSEi’s new support level.
The holding firm counter led the PSEi’s rally with its 3.2-percent gain. This was led by the country’s leading conglomerate, SM Investments, which surged by 6.44 percent.
The financial, services and property counters all rose by over 1 percent.
Only the financial counter defied the buoyant market, declining by 1.78 percent.
Total value turnover for the day amounted to P9.55 billion.
There were 94 advancers versus 95 decliners, while 54 stocks were unchanged.
Aside from SM Investments, the PSEi was buoyed by SM Prime and BPI, which advanced by nearly 3 percent. Metrobank, ICTSI and JG Summit all added over 2 percent while PLDT rose by nearly 2 percent.
Ayala Corp., the day’s most actively traded stock, climbed by 1.5 percent. Globe Telecom, DMCI and Megaworld all rose by over 1 percent.
BDO, URC, Meralco and AEV also contributed modest gains to the index.
On the other hand, Suntrust slid by 12.28 percent after resuming trades in the aftermath of a buy-in deal that would turn it into a backdoor-listing vehicle for a company that would codevelop the Westside City integrated casino resort. —DORIS DUMLAO-ABADILLA
