Strong Q1 results boost market

PSEi surges to 31st record close this year

MANILA, Philippines - A slew of double-digit earnings growths turned in by blue chip stocks fueled a continuing bull run in the local bourse en route to breaching the 7,400 level for the first time.

The 30-company Philippine Stock Exchange index climbed 1.08 percent or 78.74 points to close at 7,392.20, its 31st all-time high this year.

This marked the third straight session the main index notched a new record high. The bellwether index also posted a new intraday high at 7,403.65, breaking the 7,349.95 intraday high just a day earlier.

“Today’s performance reaffirms our earlier expectations that regional central bankers’ monetary easing would keep investors afloat in equities,” said Freya Natividad, investment analyst at brokerage firm 2Trade-Asia.com.

Investors are also positioning given the positive results of the election that showed support for the administration’s long-term growth targets, she added.

Astro del Castillo, managing director of First Grade Finance Inc., said the strong first quarter earnings continue to fuel market optimism.

Conglomerates Ayala Corp., GT Capital Holdings Inc. and Alliance Global Group Inc. were among those that reported strong double-digit earnings in the first quarter.

PSE president and CEO Hans B. Sicat said the stock market enjoyed another bull run due to the high value of shares traded yesterday.

The value of shares traded surged to P21.38 billion, more than double the P10.02 billion on Tuesday. It was boosted by a P8.19-billion block share sale of International Container Terminal Services Inc. (ICTSI).

The rally in US stocks also pushed investor confidence higher. On Tuesday, Wall St. peaked anew following the National Federation of Independent Business’ data showing that small business owners were a bit more optimistic last month.

The Dow Jones industrial average added 0.8 percent or 123.57 points to 15,215.25 while the broader Standard & Poor’s 500 index gained one percent or 16.57 points to 1,650.34.

Most local local counters were in the green, led by property firms that rose 1.82 percent or 54.51 points to 3,046. But mining and oil continued to be a laggard, pulling back 1.93 percent or 366.84 points to 18,653.93.

Most active stocks were SM Investments Corp. (up 1.37 percent), Philippine Long Distance Telephone Co. (up 1.25 percent) and Metropolitan Bank & Trust Co. (up 1.84).

ICTSI was the top decliner (-6.05 percent) given its plan to sell $200 million new shares to foreign investors.

Still, decliners outpaced advancers, 88 to 73, while 51 stocks did not change.

Del Castillo said the increasing number of losers is already a sign of profit taking.