Index breaches 6,300 level on strong buying

MANILA, Philippines - The return of investor confidence pushed the local bellwether index past the 6,300 for the first time this year despite the decline in overseas markets.

The Philippine Stock Exchange index rose 0.92 percent or 58.14 points to 6,352.76, a fresh three-and-a-half-month high and its fifth straight day in the green. The broader all shares index improved 0.74 percent or 28.20 points to 3,826.50.

“The market rally has been inspired by both local and foreign investors that finally recognize attractive valuations in the Philippine market,” said Nisha S. Alicer, research strategist at DA Market Securities.

Alicer said lower multiples especially after 2013’s significant decline, and positive earnings results and forecasts for 2014 also carried investors’ confidence.

Net foreign buying hit P1.4 billion yesterday, up from P1.08 billion on Wednesday.

Wall Street retreated due to late selling given indications that the US Federal Reserve will continue its tapering unless there is a surprising economic data. The Dow Jones industrial average sank 0.56 percent or 89.84 points to 16,040.56, while the broader Standard & Poor’s 500 index eased 0.65 percent or 12.01 points to 1,828.75.

Asian markets ended in the red, weighed down by the results of a survey showing weakness in China’s manufacturing industry in February.

At home, all counters were in the green, led by industrial firms that climbed 1.48 percent or 140.28 points to 9,607.30 while holding firms rose 1.16 percent or 66.07 points to 5,757.23.

Turnover value increased to P8.99 billion from P8.79 billion on Wednesday. Advancers outplayed decliners, 90 to 69, while 43 stocks did not change.