Index rallies on strong earnings reports

MANILA, Philippines - Strong local corporate earnings reports and foreign fund managers’ positive outlook on Philippine equities allowed the local bourse to close above the 6,200 mark for the first time this year.

The Philippine Stock Exchange index soared 1.63 percent or 100.65 points to 6,294.62, its highest in more than three months or since closing at 6,343.25 on Nov. 18, 2013. The broader all shares index picked up 1.44 percent or 54.09 points to 3,798.30.

“(The rise) started with good earnings reports and then foreign investors started distinguishing the Philippines from other problematic emerging markets,” Miguel A. Agarao, an analyst at Wealth Securities Inc., said in a phone interview.

Investors also cheered the decision of JP Morgan to upgrade Indonesia and Philippine shares to “overweight” from “neutral” given the stability in the two country’s improving current accounts.

The Dow Jones industrial average slipped 0.15 percent or 23.99 points to 16,130.40, while the broader Standard & Poor’s 500 index rose 0.12 percent or 2.13 points to 1,840.76.

Closer to home, Asian markets also ended mixed as investors refused to commit to stocks. Japan’s Nikkei 225 fell -0.52 percent or 76.71 points to 14,766.53 while Hong Kong’s Hang Seng index added 0.34 percent or 76.80 points to 22,664.52.

Locally, all counters were in the green, paced by property firms that surged 2.68 percent or 62.61 points to 2,401.04 while holding firms rallied 2.10 percent or 116.79 points to 5,691.16.

Investor participation improved as P8.79 billion worth of shares changed hands from P6.04 billion on Tuesday.

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