Optimism piques investor interest in RP stocks

Philippine share prices posted higher than usual gains on Thursday following optimism of better company earnings as a result of higher economic growth this year, analysts said. The government’s sale of $1.5 billion worth of global bonds on Wednesday also piqued investor interest in a market that had been looking for market-moving news. The Philippine Stock Exchange index gained 1.25 percent or 37.85 points to 3,077.78, with its six subindices rising across the board. Gainers beat losers 88 to 35, while 56 stocks were unchanged. Volume was thicker at 3.38 billion shares worth P2.54 billion. “There was some positioning on optimism that the higher [economic] growth projection for the year will translate to better earnings for listed companies," said Jose Vistan, research director of AB Capital Securities, Inc. He also noted that January has been typically good for the equities market. Vistan said the local stock market seemed to be catching up with the rest of the region and the world, most of which started off the new year with a big rally. “We haven't gained that much in the past few days, so we were just catching up," analyst Jasper Jimenez of BDO Securities Corp. said in an interview. He added that the government’s successful international borrowing was “a positive note in terms of confidence in the Philippines." Jimenez further noted that dominant carrier Philippine Long Distance Telephone Co. (PLDT) had led the market's rally on Thursday after being a laggard for more than two months. "It's about time for it to again make a headway. After all, PLDT is still the biggest money maker in the market," he pointed out. Jimenez said the local bourse's direction would still be dictated by other stock markets. During Thursday's trading, the mining and oil index posted the biggest gain of 3.21 percent or 328.28 points to close at 10,549.06, followed by property stocks, which went up by 1.76 percent or 18.54 points to 1,073.96. Service stocks also gained 1.39 percent or 21.22 points to 1,544.47, while industrial shares added 1.23 percent or 57.05 points to finish at 4,704.05. Financial stocks likewise increased by 0.66 percent or 4.39 points to 670.02, while holding firms inched up by 0.27 percent or 4.34 points to 1,606.12. PLDT, the fifth most actively traded stock, went up by P50 to close at P2, 690, while Philex Mining Corp. added 50 centavos to finish at P15. Bank of the Philippine Islands (BPI) gained 50 centavos to P48.50, while Energy Development Corp., the most actively traded stock, was unchanged at P4.65. On other hand, Ayala Corp. lost P2.50 to P297.50, while SM Investments Corp. slid by P2.50 to P322.50. — Norman P. Aquino, GMANews.TV