PSEi returns above 8,000 on earnings optimism

THE MAIN INDEX returned above the 8,000 level on positive corporate earnings reports at home as well as signs of improving US economic and global trade prospects.

The Philippine Stock Exchange index (PSEi) shot up 82.53 points or 1.03% to close at 8,059.65 on Monday, as the broader all shares index rose 44.25 points or 0.92% to 4,831.70.

Timson Securities, Inc. Trader Jervin S. De Celis attributed Monday’s gains to positive market sentiment fueled by earnings reports, which came ahead of the October inflation and gross domestic product (GDP) data scheduled to be released this week. “SM Prime (Holdings, Inc.) and Security Bank (Corp.) disclosed their earnings which are above estimates, while the (Bangko Sentral ng Pilipinas) has stated that full year inflation and GDP (gross domestic product growth) are poised to settle at 2.5% and six percent (respectively), still one of the fastest GDP growth in Asia,” Mr. De Celis said in a mobile phone message.

SM Prime reported its net income increased 22% to P8.3 billion in the third quarter, while Security Bank’s net income jumped 22% to P2.7 billion in the same period. SM Prime shares gained 1.28% to P39.50 apiece while those of Security Bank went up 2.41% to P204 each at the end of Monday’s session.

For Luis A. Limlingan, head of sales at Regina Capital Development Corp., the lift at the PSEi was also influenced by “much stronger-than-expected US jobs data and optimism over the trade negotiation between China and US.” The US government reported late last week the generation of 128,000 jobs in October. That fueled Wall Street’s rise on Friday, with the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite climbing 1.11%, 0.97% and 1.13%, respectively. Also on Friday, the United States and China said they were inching closer to an agreement to end their trade war.

Most major Asian markets followed suit on Monday, with the Shanghai SE Composite index, Hong Kong’s Hang Seng, South Korea’s KOSPI index, India’s S&P BSES Sensex, Australia’s S&P/ASX 200 and Singapore’s Straits Times index moving up 0.58%, 1.65%, 1.43%, 0.41%, 0.27% and 0.2% respectively. Japanese markets were closed on a holiday.

Back home, all six sectoral indices moved up at the close of Monday’s session: industrial by 127.83 points or 1.22% to 10,598.77, mining and oil by 112.08 points or 1.21% to 9,328.60, property by 48.28 points or 1.15% to 4,220.57, holding firms by 30.96 points or 0.39% to 7,861.26, services by 25.12 points or 1.66% to 1,538.17 and financials by 24.72 points or 1.28% to 1,943.12.

Value turnover amounted to 1.15 billion shares worth P6.58 billion, compared to Thursday’s 1.10 billion shares worth P7.76 billion. Stocks that gained were nearly double those that lost 120 to 62, while 41 others ended flat.

Foreign investors were predominantly bullish for the fifth straight trading day, ending Monday with P1-billion net buying. — Denise A. Valdez