PHL stocks extend rally, track Wall Street’s rise
PHILIPPINE SHARES ended higher for the third straight session on Wednesday to track Wall Street’s rise overnight and amid an improving inflation outlook at home.
The bellwether Philippine Stock Exchange index (PSEi) rose by 1.01% or 65.95 points to end at 6,572.75 on Wednesday, while the broader all shares index climbed by 0.48% or 16.56 points to close at 3,463.46.
“The local bourse gained during this session, rising by 65.95 points (1.01%) to 6,572.75 following positive cues from the US markets amid good initial earnings reports. Investors continue to buy stocks at bargain levels while awaiting catalysts,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.
US stocks closed higher on Tuesday following positive earnings from top-tier companies and as investors were focused on quarterly results from Magnificent Seven and other mega-cap growth stocks, Reuters reported.
Tesla kicked off the earnings cycle for technology heavyweights after markets closed on Tuesday, announcing the launch of new electric vehicle models and quarterly revenue that missed analyst estimates. Its shares jumped 6% in extended hours trading.
The Dow Jones Industrial Average rose 263.71 points or 0.69% to 38,503.69; the S&P 500 gained 59.95 points or 1.2% to 5,070.55; and the Nasdaq Composite gained 245.33 points or 1.59% to 15,696.64.
“Philippine shares continued to rebound, finishing 1.01% higher, nearing the 6,600 level as investors applauded the “so far, so good” earnings results of US listed companies,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“Additionally, National Economic and Development Authority Secretary Arsenio M. Balisacan’s outlook on inflation, in which he sees it starting to ease in the second half as food price pressures are seen to diminish by then, contributed to the positive sentiment,” Ms. Alviar said.
Headline inflation rose for a second straight month in March to 3.7% amid rising food prices. Food inflation accelerated to 5.7%, its fastest pace in four months, mainly driven by rice.
Almost all of the market’s sectoral indices ended higher, with financials being the lone decliner, dropping by 0.09% or 1.88 points to 2,045.90.
Meanwhile, holding firms increased by 1.81% or 107.85 points to 6,059.47; industrials rose by 1.27% or 108.94 points to 8,634.95; property went up by 1.22% or 30.45 points to 2,519.10; services climbed by 0.45% or 8.33 points to 1,839.85; and mining and oil added 0.32% or 27.58 points to end at 8,587.53.
Value turnover rose to P6.07 billion on Wednesday with 1.13 billion shares changing hands from the P5.11 billion with 554.76 million issues traded on Tuesday.
Advancers beat decliners, 111 versus 99, while 52 names were unchanged.
Net foreign selling surged to P1.86 billion on Wednesday from P508.35 million on Tuesday. — Revin Mikhael D. Ochave with Reuters
