Index rallies above 7,400 level

MANILA, Philippines – Share prices rallied yesterday, buoyed by optimism on the US economy and overall rosy mood in the region, analysts said.

The main share Philippine Stock Exchange index surged 107.23 points to close at 7,463.95.

Similarly, the broader All Shares index finished ahead by 45.20 points or one percent to settle at 4,457.31.

Most of the counters except for the mining and oil barometer closed in positive territory. The property sector led the PSEi higher, rising 2.32 percent while the holding firms index rose 1.19 percent.

Total value turnover was likewise significant at P7.66 billion, with advancing stocks edging out decliners, 112 to 84 while 39 stocks were left unchanged.

Paolo Hizon of Unicapital Securities said market investors may continue to see rallies if the index maintains its prevailing bullish momentum after it rallied and broke its two-day fall on Tuesday.

First Metro Investment Corp. and UA&P, meanwhile, said in a research note the strong economic growth is intact regardless of the outcome of the elections.

“Growth drivers are unchanged and election spending will provide tailwinds to growth,” it said.

At the same time, the report said on a “valuation standpoint, valuation premium – which the Philippines enjoyed in the last five to six years due to country’s stable economic and political backdrop – may be at risk. As a result, we could see pullbacks proliferate in May.”

It further advised investors to be on the lookout for mispriced stocks as they may be attractive entry points to accumulate stocks at low valuations.