PSEi rises 2% on NYSE gains, RP political landscape

The Philippine Stock Exchange index (PSEi) advanced by 2 percent Thursday, its highest close in nearly 29 months, fueled by gains overnight on the New York Stock Exchange and the underlying market sentiment over the country's political landscape. The 2.3-percent gain of the Dow Jones Industrial Average, the NYSE’s main index, further helped the Philippine market which was already riding on very optimistic, politically-tied sentiments with the impending proclamation of presidential front-runner Sen. Benigno Aquino III, Jonathan Ravelas, chief market strategist at BDO Unibank, said. The PSEi rose 65.67 points, or 1.99 percent, to close at 3,355.23. More than 826.8 million shares, valued at P4.52 billion, were traded in 9,943 transactions during the session. Advancers outpaced decliners 74 to 32, with 71 issues closing unchanged. Stock markets in Japan, South Korea, Australia, Taiwan, and Singapore also posted gains Thursday, which analysts attributed to Wall Street’s advance on strong US housing figures and a recovery in energy stocks traded on the NYSE. Philippine shares have taken quite a beating from the European debt crisis, the military tensions on the Korean Peninsula, and the recent losses on Wall Street. But these concerns now seem to have "taken the back seat," Ravelas said. The underlying optimism is riding on the impending change in government and the proclamation of Aquino, lending a "semblance of certainty" to the country’s political landscape. Buyers are also combing the market for bargains, the BDO market strategist said. Plus, he said, the market is still riding on the positive impetus of the 7.3-percent growth in the gross domestic product for the first quarter, with investors expecting the economic condition’s impact on corporate results. VS, GMANews.TV