Index rallies for 3rd straight session

MANILA, Philippines - The local benchmark index rallied for a third consecutive session yesterday, bucking an overnight retreat in US and European stocks.

The Philippine Stock Exchange index (PSEi) climbed 0.17 percent or 12.50 points to close at 7,344.23, while the broader all shares index likewise gained 0.24 percent or 10.14 points to 4,316.59.

Taking the spotlight yesterday was newcomer Xurpas Inc., which opened at the maximum ceiling price of P5.95 per share, 50 percent higher than its offer price of P3.97.

“This was a far cry from the previous day’s debut of semiconductor manufacturer, Phoenix Semiconductors Philippines Corp. which opened at its top price of only P3.40, a mere 7.94 percent above its offer price of P3.15,” said Justino Calaycay Jr., analyst at Accord Capital Equities Corp.  

The market, however, briefly flirted with losses minutes prior to the close before eventually stretching its winning streak to three.

“This is characteristic of a market that is groping for hints either to sustain rallies or to begin securing profits,” Calaycay said.

In the end, all counters finished in the green led by property firms which improved 0.57 percent or 16.26 points.

Decliners, however, continued to pound on advancers, 91 to 83, while 56 stocks were unchanged. Value turnover rose to P8.91 billion from P7.65 billion the previous day.

Abroad, Asian shares were upbeat on the back of improvement in crude oil prices while US and European stocks tumbled overnight.

“Two days into the month and the market is taking a form consistent with the historical probabilities we had outlined in a previous report. While IPO plays may still have something left for the balance of the week, the true test of the market’s resilience in holding fort above 7300 — and consequently an attempt to breakthrough 7400— comes as we count down the days in the trading calendar,” Calaycay said.