Inquirer: Growing optimism lifts stocks to 2-year high
I’d like to start this blog on a positive note with a news article from Inquirer.net about growing optimism in the local financial markets.
LOCAL STOCKS ROSE TO A NEW TWO-YEAR high Friday as optimism over the underlying domestic economy and steady trading overseas encouraged bargain-hunting.
The main-share Philippine Stock Exchange index gained 1.82 points or 0.054 percent to close at 3,357.05.
This set a new milestone for the PSEi after hitting 3,447.29 on Jan. 15, 2008. The index has gained 3.2 percent for the week and nearly 10 percent since the start of this year.
“It’s consolidating after a breakout,” said Eagle Equities Inc. president Joseph Roxas.
Value turnover was heavy at P7.45 billion, further improving from the previous day’s P4.53 billion. Foreign investors snapped up selective equities, betting on better times ahead following the successful conclusion of automated elections and the stunning first-quarter economic growth performance.
On Friday, the Bangko Sentral ng Pilipinas also kept its key interest rates at record-low levels. Financial markets now expect monetary authorities to delay the unwinding of US subprime crisis-induced monetary easing given lingering concerns on a fallout from Europe’s fiscal crisis.
There were 67 gainers as against 43 decliners and 58 unchanged stocks.
The positive finish was led by the industrial counter, which rose 1.1 percent. Trading on holding firms and property issues were also firm, offsetting the weakness in services and mining/oil sub-sectors.
Among the day’s advancers were Universal Robina Corp., Aboitiz Power Corp., SM Investments Corp., Agrinurture Inc., Aboitiz Equity Ventures Inc., Digital Telecommunications Philippines Inc. and DMCI Holdings Inc.
On the other hand, there was profit-taking on Banco de Oro, Ayala Corp., PLDT, Energy Development Corp., Philex, BPI and Megaworld.
“Asian stocks, having been recipients of some foreign capital over the past few sessions, have remained quite buoyant despite some near-term volatility, mostly created by domestic capital,” according to Credit Agricole Corporate and Investment Bank.
The local market also mirrored an overnight marginal gain by the Dow Jones industrial index, which added 5.74 points or 0.06 percent to close at 10,255.28.