LOCAL EQUITIES firmed up on Monday as investor sentiment improved in anticipation of the third-quarter earnings season.
The bellwether Philippine Stock Exchange index jumped 1.18% or 84.64 points to 7,236.16 yesterday. The broader all-shares index likewise rose 0.89% or 39.08 points to finish at 4,398.73.
“Philippine markets started the week on a positive note as investors gear up for the start of earnings season. Investors brushed off the weaker performance of the US stocks as this was due to the lower than expected housing data, overshadowing solid corporate earnings,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile message.
SM Prime Holdings, Inc. was the first PSEi-member firm to disclose its financial performance for the first nine months of the year. The Sy-led company booked a 17% profit increase to P23.44 billion in the nine months ending September, following a 15% uptick in consolidated revenues to P74.56 billion.
Shares in SM Prime were the most actively traded for the day, gaining 1.16% to P34.90 each, with turnover valued at P441.41 million.
Papa Securities Corp. trader Gabriel Jose F. Perez attributed the market’s increase to the muted net foreign selling figure for the day, which slimmed to P82.88 million versus the P220.42-million net sales posted last Friday.
The main index bucked the general weakness seen in international markets over the weekend. Only the Dow Jones Industrial Average managed to rise last Friday, adding 0.26% or 64.89 points to 25,444.34. The S&P 500 index slipped by 0.04% to 2,767.78, while the Nasdaq Composite index dropped 0.48% or 36.11 points to 7,449.03.
Asian markets also ignored Wall Street’s weaker performance, as investors focused on Chinese officials’ assurance of economic growth, even as the Chinese economy expanded by 6.5% in the third quarter, its slowest since 2009.
Most sectoral indices ended in positive territory back home, led by financials which gained 1.73% or 27.98 points to 1,640.53. Holding firms went up 1.48% or 101.96 points to 6,969.33; property climbed 0.67% or 24.26 points to 3,602.07; industrials added 0.53% or 57.52 points to 10,864.35 and services was higher by 0.28% or 4.28 points to 1,491.97.
Only the mining and oil counter recorded losses, slumping 1.16% or 112.35 points to 9,505.45.
Some 688.55 million issues valued at P4.45 billion switched hands, dropping slightly from the previous session’s P4.94 billion.
Advancers beat decliners, 107 to 83, while 38 names remained unchanged.
“With the index breaking out of a significant support area around the 7,130-7,150 level, next resistance should be in the area of its 50- and 100-day moving averages, and at Sept. 24’s high of 7,400-7,430. A caveat, net foreign selling still remains present and total value turnover is still noticeably low,” Papa Securities’ Mr. Perez said. — Arra B. Francia

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