Index recovers on strong corporate earnings report

MANILA, Philippines - The Philippine Stock Exchange index (PSEi) recovered from Monday’s brief breather as it managed to stay above the 7,800 level behind some inspiring corporate earnings results.

The PSEi went up slightly by 0.10 percent or 8.19 points to finish at 7,828.48 while the broader all shares index improved 0.18 percent or 8.40 points at 4,553.77.

“The rebound in US stocks, weakness in the yen and consumer prices in China provided the early leads to Tuesday’s trades,” said Justino Calaycay Jr., analyst at Accord Capital Equities Corp.

The positive corporate earnings result unveiled yesterday, meanwhile, provided the finishing touches to sustain the lead, other analysts said.

Conglomerate Ayala Corp. (AC) reported 46 percent hike in its net income last year while Puregold Price Club Inc. booked an 18-percent rise.

Share prices of AC and Puregold rose 1.23 percent and 3.19 percent, respectively.

Abroad, US stocks bounced back from a sharp overnight retreat Friday while Asian markets were mixed with Japan’s Nikkei falling 0.8 percent.

In the local market, only two of the six counters were in the red. Mining and oil firms lost 0.88 percent while industrial companies dropped 0.30 percent.

Services firms, meanwhile, led counters in the green as it increased 0.51 percent.

Market breadth turned out on the positive side as advancers crushed decliners, 97 to 71, while 50 shares were unchanged.

Value turnover improved from the previous day to P9.08 billion with 3.26   billion stocks changing hands.