SHARES surged on Monday as investors tracked positive finishes in US markets last Friday, while also gaining confidence from Moody’s Investors Service’s outlook on the local banking system.
The bellwether Philippine Stock Exchange index (PSEi) jumped 2.63% or 186.92 points to close at 7,270.26 yesterday, its fourth consecutive day with gains. The broader all-shares index likewise climbed 1.77% or 76.30 points to finish at 4,386.82.
“Mainly it was driven by the optimism that was brought about by the US market up last Friday,” Diversified Securities, Inc. equities trader Aniceto K. Pangan said in a phone interview.
The Dow Jones Industrial Average firmed up 0.49% or 123.95 points to 25,413.22 while the S&P 500 index added 0.22% or 6.07 points to 2,736.27. In contrast, the Nasdaq Composite index slipped 0.15% or 11.16 points to 7,247.87.
Mr. Pangan also noted that investors are optimistic about Chinese President Xi Jinping’s visit to the Philippines on Nov. 20, Tuesday. He is set to have “in-depth discussions” with President Rodrigo R. Duterte to elevate the two countries’ “all-round cooperation.”
“Secondly we have the upcoming visit by the Chinese premier, which could bring a number of loans and exploration are expected to be signed,” Mr. Pangan said.
“Another positive support for traders was that Moody’s came out with a statement that the Philippine banking system is stable, even though some risks loom,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile message.
Philippine banks will remain on “stable” footing over the coming year, Moody’s said in a report published on Monday, propped up by an ample capital base and upbeat loan growth despite rising interest rates.
The global debt watcher kept its outlook on the domestic banking system at “stable” for the next 12-18 months, pointing out that the industry will remain solid despite some easing in economic growth.
Five sectoral indices ended in positive territory, led by holding firms which rose 3.73% or 257.98 points to 7,172.27. Services advanced 2.51% or 34.71 points to 1,415.89; financials gained 2.37% or 39.48 points to 1,701.32; property firmed up 1.5% or 51.67 points to 3,478.14; while industrials added 0.28% or 30.88 points to 10,703.73.
Mining and oil was the lone counter in the red, dipping 0.2% or 18.20 points to 8,929.92.
Some 1.36 billion issues switched hands valued at P8.34 billion, dropping from the previous session’s P9.91 billion.
Advancers outpaced decliners, 107 to 81, while 49 names were unchanged.
Net foreign outflows were at P286.49 million on Monday from the P148.54-million net sales recorded last Friday.
“We have to see the index break the 7,350 level. Now for the week, I see the index trying to break that level, but definitely there’s some possibility for a correction for the latter part,” Mr. Pangan said. — Arra B. Francia

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