LOCAL SHARES extended their rally on Thursday as concerns over a global trade war continue to ease.
The Philippine Stock Exchange index (PSEi) climbed 114.17 points or 1.48% to close at 7,803.31 Thursday, June 7.
The broader all-shares index also added 54.58 points or 1.16% to 4,723.86.
Luis A. Limlingan, managing director at Regina Capital Development Corp., said shares gained as global risks subsided — albeit only in the short term — after easing worries over a trade war between the world’s two largest economies.
“The Philippines felt the effect of US stocks ending firmly higher, led by financials and basic materials, with two major indexes ending at records as equities extended a recent winning streak to a fourth straight session,” Mr. Limlingan said.
“On the other hand the local market brushed aside the development in the European front: a choppy day, as ECB (European Central Bank) officials indicated policy makers will begin to focus on ending the central bank’s QE (quantitative easing) program,” he said.
The ECB’s chief economist Peter Praet, a close ally of President Mario Draghi, said on Wednesday that the ECB would debate next week whether to end bond purchases later this year.
“Overall crude and refined product inventories rose the most since May 2009. Crude supplies climbed by 2.07 million barrels last week on higher production and imports, the EIA (Energy Information Administration) said,” Mr. Limlingan added.
Papa Securities Corp. trader Gabriel F. Perez said the PSEi was stronger throughout the trading day. “With this gain, the index broke through its initial resistance levels at its 50-day moving average and 50% [Fibonacci] level between 7,750 to 7,790.”
Almost all sectoral indices finished in the green, led by financials, which advanced by 47.73 points or 2.51% to 1,942.49. Holding firms gained 125.91 points or 1.65% to close at 7,751.96; mining and oil added 98.26 points or 0.96% to 10,244.01; industrials inched up 89.97 points or 0.83% to 10,873.20; while property climbed 28.25 points or 0.74% to 3,847.92.
Meanwhile, services was the lone decliner, falling 6.21 points or 0.41% to end at 1,499.60.
Value turnover stood at P6.93 billion as 1.43 billion shares changed hands, up from the previous day’s P5.94 billion.
Advancers outpaced decliners, 119 to 77, while 45 names were unchanged.
Foreigners continued to sell their holdings, recording a net outflow of P486.83 million, more than Wednesday’s P14.08 million net sales.
“The next level to watch out for now would be 7,900, the area of the PSEi’s previous high last May 15,” Mr. Perez said.
Regina Capital’s Mr. Limlingan also expects the market to stay above the 7,750 mark.
“Our resistance is 7,850 and the market should keep above 7,750 which is the [50-day moving average] to show signs of a reversal,” he said. — D.A. Valdez