RP stocks sustain rally on positive corporate outlook

The Philippine Stock Exchange index continued to rally on Friday as optimism on corporate developments boosted investors’ risk appetite. “Investors seemed optimistic for the industry. They’re looking at better earnings reports of companies," said analyst Maria Arlysa Narciso of AB Capital Securities Inc. The PSEi inched up 11.44 points or 0.28 percent to close at 4,078.87. Narciso said the lack of market moving leads contributed to the investors’ reduced buying enthusiasm, making the value turnover reach relatively lighter than the previous trading days at P5.995 billion. There were 12.622 billion shares that changed hands. There were 81 advancers and 81 decliners, with 34 issues remaining unchanged. The holding firms’ counter led the day’s gain, rising by 1.87 percent. However, the mining and oil subsector index dropped by 1.72 percent. Narciso pointed out that the market is technically overbought. She said, “It won’t hurt the bullish uptrend if we see a healthy technical correction." A correction should prove better for the market as it will be able to create a buying opportunity for investors who got left off by the sudden surge in prices, Narciso said. Immediate support is at 4,000 while resistance is at 4,100, AB Capital noted. -- JE/OMG, GMANews.TV