Index advances on blue chip buying

MANILA, Philippines - Local stocks gained for the second straight day yesterday, driven by the continued blue chip buying.

The Philippine Stock Exchange index (PSEi) added 0.66 percent or 41.43 points to close at 6,344.14, while the broader all shares index picked up 0.93 percent or 35.38 points to 3,837.81.

The local market followed the ascent of Wall Street, which rose anew due to the withdrawal of former Treasury Secretary Lawrence Summers from the race to become the next US Federal Reserve chair. The market was worried that Summers will favor the end of the easy money policy.

The Dow Jones industrial average added 0.77 percent or 118.72 points to 15,494.78, while the broader Standard & Poor’s 500 index rose 0.57 percent or 9.61 points to 1,697.60.

Most subsectors were in the green, led by property firms that jumped 1.61 percent or 38.65 points to 2,442.09. Mining and oil continues its retreat, losing 0.38 percent or 48.28 points to 12,650.31.

Most active shares were in the positive territory, paced by top-traded Ayala Land Inc. (+2.17 percent) on the consolidation of a Cebu joint venture asset while Touch Solutions Inc. (+8.38 percent) rallied yesterday. Trading of shares of Touch Solutions, the backdoor listing vehicle of liquor maker Emperador Inc., resumed yesterday after several days of trading suspension.

Turnover remained robust, with P10.06 billion worth of shares changing hands, just a tad lower than the P10.07 billion on Monday.