Index surges on rosy Q3 earnings outlook

MANILA, Philippines - Share prices rebounded yesterday due largely to rosy third quarter earnings outlook, analysts said.

The Philippine Stock Exchange index (PSEi) rose 64.59 points or 0.90 percent, to finish at 7,198.85, while the broader All Shares index ended higher by 33.07 points, or 0.80 percent, to close at 4,152.35.

Value turnover reached P4.480 billion as advancers outnumbered decliners 96 to 71. Forty three stocks were left unchanged.

This was coming from last week which saw stock markets across Asia and the Pacific with varying degrees of losses.

“With the addition of South Korea, there were only four markets that managed to stay in the green on the year-to-date. If it is any consolation, the PSEI was the “best among-the-worst” performers, slipping 1.33 percent followed by India shares which retreated by twice that magnitude. Neighboring Singapore and Indonesia continues to sustain double-digit losses after 10 months of trades,” said Justino Calaycay of Philstocks Financial.

Calaycay said investors would be guided by anticipation over third quarter profits.

“The bulk of the numbers will come out in the second and third weeks of November,” he said.

He said hints on the sustainability of the short-term rise rests on and revolves around four main issues. These are the US economy, regional peers, particularly China and domestic economic and political news and individual corporate earnings.