Index surges on renewed optimism

MANILA, Philippines - The benchmark Philippine Stock Exchange index (PSEi) returned to the 7,000-level yesterday, buoyed by optimism in the regional market.

The PSEi surged 133.53 points, or 1.93 percent, to close at 7,060.60, while the broader All Shares index climbed 57.44 points, or 1.44 percent, to end at 4,054.35.

All the other indexes except for the industrial index closed higher.

Value turnover reached P9.99 billion as advancers outnumbered decliners, 104 to 68, while 42 stocks were left unchanged.

Astro Del Castillo, managing director at First Grade Finance Inc., said more buyers returned to the market yesterday. “More buyers were present as there are less red flags in today’s trading. Local market was further boosted by continued optimism in the regional market and a string of favorable economic news in the country,” he said.

The positive developments include reports that the Bangko Sentral ng Pilipinas is likely to maintain rates until next year, higher OFW remittances, BPO earnings and ‘sin tax’ collections.

Del Castillo said the market is expected to test the 7,100 level.

“However, actions this week by OPEC on oil production and US job reports could influence the trend of the market,” he said.

Asian stock markets rose yesterday on improved manufacturing data in Japan, which offset weak Chinese data.

Japan’s Nikkei 225 gained one percent to 20,012.40 while Hong Kong’s Hang Seng jumped 1.6 percent to 22,381.35.