SONA optimism boosts share prices

MANILA, Philippines - Local share prices climbed yesterday on optimism on President Duterte’s first State of the Nation Address (SONA) which came later in the day.

The Philippine Stock Exchange index (PSEi) gained 0.30 percent or 23.78 points to close 8,049.13, while the broader All Shares index inched up 0.27 percent or 12.95 points to settle 4,806.98.

Analysts said all eyes were on the SONA yesterday, and investors were “positively” looking forward to what the President has to say.

“The trading week begins with President Duterte’s first SONA, coming half an hour after  the market closes. Markets should be hearing for  the first time the new government’s comprehensive plan – a chance to gauge whether it is putting  money where its mouth is, so to speak,” A&A Securities research head Justino Calaycay Jr. said.

With optimism running high, all local counters except for the mining and oil finished in the positive territory.

Financial companies were the biggest winners, gaining 0.83 percent or 15.08 points. Mining and oil firms, however, lost 0.60 percent or 67.56 points.

Market breadth was positive as advancers pummeled decliners, 115 to 85, while 45 stocks were unchanged.

Value turnover was robust at P10.18 billion.

“As the index trades at all-time high amid continued net foreign buying, several stocks have hit new 52-week and all-time highs. We remain optimistic and bullish on the PSEi over the long-term, however, we note that current valuations have become stretched and may need to pull back consolidate to set a stage for another strong leg up,” DA Market Securities said.