Stock Market

PSEi rises again on plans to tackle crisis

Posted on October 14, 2011

STOCKS ROSE for the sixth straight session yesterday, buoyed by hopes of a comprehensive plan to stamp out the euro zone debt crisis.

Profit taking, however, minimized the main share Philippine Stock Exchange index’s (PSEi) gains.

The PSEi added 0.36% or 14.77 points to 4,134.48, while the broader all-share index rose by 0.61% or 17.82 points to 2,939.40.

“Trading continued to be upbeat [yesterday] due to the sustained upward momentum on Wall Street, reflecting optimism the global crisis may soon be addressed,” said brokerage firm RCBC Securities, Inc. in a market report yesterday.

“The market closed higher due to hopes that Europe would come up with detailed plans to solve the debt crises,” added analyst Freya B. Natividad of in a telephone interview yesterday.

Investors took their cues from US stocks that posted solid gains overnight as investors took heart from signs of progress in Europe in dealing with the euro zone debt crisis.

The Dow Jones industrial average rose by 0.9% or 102.55 points to 11,518.85, while the broader Standard & Poor’s 500 index rose by 1% or 11.71 points to 1,207.25.

Tech-heavy Nasdaq composite index added 0.8% or 21.70 points to 2,604.73.

The move by the government to lower its growth targets for 2011 and 2012 was ignored, RCBC Securities noted.

On Wednesday, the interagency Development Budget Coordination Committee said growth might come in at 4.5%-5.5% this year and 5%-6% next year, instead of the 5%-6% targeted for 2011 and 5.5%-6.5% for 2012.

Mining stocks again pushed the PSEi higher yesterday.

Consunji-led Semirara Mining Corp. surged by 3.59% or P7 to P202.

Philex Mining Corp. rose by 1.51% or 35 centavos to P23.55.

Lepanto Consolidated Mining “A” -- offered only to Filipino investors -- and “B” -- also offered to foreign investors -- climbed by 1.50% or two centavos to P1.35 and 2.19% or three centavos to P1.40, respectively.

The main index, however, posted just a slight gain due to profit taking.

“Some investors experienced a slight selling pressure yesterday, but overall, the outlook is still bullish,” Ms. Natividad said.

Turnover slid to P4.91 billion from P5.34 billion on Wednesday, even as foreigners bagged local stocks to the tune of P494 million in net foreign buying.

Advancers led decliners 84 to 64, while 34 stocks were unchanged.

With the exception of industrial that shed 0.55% or 37.99 points to 6,821.14, most subindices closed in the green.

Gainers were led by mining and oil that added 1.62% or 350.60 points to 21,928.22, followed by services that rose by 1.13% or 16.10 points to 1,440.91.

Financial added 0.47% or 4.41 points to 935.29, while holding firms gained 0.41% or 13.46 points to 3,287.85, respectively.

Property rose by 0.05% or 0.76 point to 1,462.49.

For the next few days, the market may trade sideways -- or fall -- after almost a week of positive finishes. “After a six-day rally, the market may now be ripe for some profit-taking given the PSEi’s ascent in the past days,” Ms. Natividad said.

However, investors would remain focused on developments abroad, as they have been in previous days. “If the US and Europe come out with a clearer picture on how they intend to resolve their economic problems, the market may close higher,” Ms. Natividad said.

Specific issues of interest today include property and mining stocks, she said. -- with AFP