Stocks rally as investors remain optimistic

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Photo by Santiago J. Arnaiz

Stocks jumped on Tuesday, May 15, as investors remained optimistic on the rate hike implemented by the local central bank last week.

The 30-member Philippine Stock Exchange index climbed 1.73% or 133.86 points to close at 7,885.97. The broader all-shares index likewise increased 1.3% ot 60.99 points to finish at 4,770.14.

“I guess it’s the investors cheering on the rate hike last week that’s keeping our market high…The recent move by the BSP (Bangko Sentral ng Pilipinas, which a lot of people think was long overdue, lured back investors to buy our index stock at low prices,” Timson Securities, Inc. trader Jervin S. De Celis said on Tuesday.

Four sectoral counters ended in positive territory, while two closed in the negative. The property sector soared 4.8% or 177.13 points to close at 3,870.50. This was boosted by the 7.43% increase in shares of SM Prime Holdings, Inc to P38.30 each.

Holding firms inched up 1.35% or 104.72 points to 7,850.22, while services added 0.51% or 7.94 points to 1,553.86. Financials went up 0.51% or 9.81 points to 1,943.47.

Industrial dipped 0.03% or 3.1 points to 11,185.74, while mining and oil also shed 0.03% or 2.83 points to 10,191.34.

Investors started to come back to the market as value turnover reached P8.66 billion after some 995 million issues switched hands. This is higher than the average P5.8-billion turnover seen last week.

Advancers outpaced decliners, 110 to 91, while 47 issues were unchanged. — Arra B. Francia