Index rises on strong corporate earnings

MANILA, Philippines - Share prices gained yesterday, boosted largely by encouraging third quarter corporate income reports.

The Philippine Stock Exchange index (PSEi) gained 11.88 points, or 0.16 percent, to close at 7,210.73, while the broader All Shares index rose 3.74 points, or 0.09 percent, to close at 4,156.09 points.

Most indexes closed higher, led by the mining and oil barometer, which surged 165.41 points or 1.43 percent higher to settle at 11,666.12.

Astro del Castillo, managing director of First Grade Finance Inc., said investors remain positive as companies report on their third quarter earnings.

“Investors remain positive as corporate earnings continue to pour in. However, cautiousness is still up in the air given that we ended flat and value turn over remains thin,” Del Castillo said.

Value turnover remained thin at P5.940 billion even as advancers outnumbers decliners 98 to 83 and left 37 stocks unchanged.

Analysts said corporate earnings would help determine whether or not the market would sustain its rally and be a precursor of the generally bullish season capped by the Santa Claus rally.

While the market continues to keep an eye on central bank policies across the globe, domestic corporate earnings will take center stage and would likely be the main driving force for trades in the next two to three weeks, they said.