Stocks jump on oil recovery

MANILA, Philippines – The local stock market rallied yesterday as investors were encouraged by positive earnings results of some companies and the huge spike in the price of oil.

Investor optimism was prevalent across the Asian region.

The benchmark Philippine Stock Exchange index (PSEi) surged 131.35 points or 2.01 percent with all indices closing in positive territory led by the mining and oil, and holding firms.

The mining and oil index gained 542.15 points or 5.87 percent as investors cheered the rise in oil prices.

Oil futures extended gains on the back of the weakening of the dollar, which makes oil cheaper for international investors buying with other currencies.

The benchmark US crude added 36 cents, or 1.1 percent, to $32.64 a barrel in electronic trading on the New York Mercantile Exchange while reports showed the contract jumped $2.4, or eight percent to close at $32.28 a barrel in New York yesterday.

Brent crude, a benchmark for international oil prices, rose 33 cents to $35.37.

“I was thinking that the rally was caused by the surge in crude oil prices but the earnings season makes more sense,” said Paolo Hizon of Unicapital Securities.

Among the gainers  were Robinsons Land Corp. (6.12 percent), Megaworld (6.12 percent) and DM Consunji (5.92 percent).