Friday, March 8, 2013

Philippine Stock Market Goes Up

Stocks rebounded from a day's slump, regaining the 6,800 level on Friday, following the Wall Street's overnight rally.

The Philippine Stock Exchange index (PSEi) surged 108.64 points or 1.62 percent to close at 6,833.77 from Thursday's 6,725.13 finish. This was slightly lower than an all-time high of 6,835.21 on March 6.

The broader All Shares index also advanced 48.08 points or 1.14 percent to 4,254.98.

Freya Natividad, 2tradeasia.com analyst, said a technical rally was felt following sharp correction near 6,700 in the prior session.

Natividad said investors took directions from the Wall Street's overnight rally, supported by improvement in the latest jobless claims data.

The Dow Jones industrial average rose 33.25 points while Nasdaq added nine points.

Banco de Oro chief strategist Jonathan Ravelas said the local equities rallied anew after the United States reached a new high at 14,354.

"Local investors (considered this) as a signal to take on more risks, to buy stocks, causing the index above the 6,800 level," he said.

Ravelas said good earnings outlook for corporate, stable interest rates and lower inflation also continue to support the market's momentum upward.

The volume of transactions reached only 1.68 billion shares but values were high at P12.64 billion.

Advancers outpaced decliners, 113 to 61, while 40 issues were unchanged.

Most actively traded stocks were San Miguel Corporation, SM Investments Corporation, Ayala Land, Inc., Philippine Long Distance Telephone Company and Energy Development Corporation.

No comments: