Local stocks surge to over 2-year high

MANILA, Philippines - The local stock market soared to a fresh two-year high yesterday – its best finish in over 26 months – as foreign investors snapped up bargain blue chip stocks and select second-liners.

The main composite index hit the 3,300 psychological resistance level before closing 1.19 percent or 38.71 points higher at 3,294.83. Volume turnover reached 1.22 billion shares valued at P4.23 billion, led by trades involving PLDT which saw its share price rise 1.81 percent to P2,535 each share.

Traders said the market’s uptrend was supported by the progress on Greece’s aid package and by the positive corporate developments on the local front.

Advancers beat decliners, 64 to 41, while 65 issues were left unchanged.

Two index issues – Ayala Land Inc. and SM Investments Corp. made new 52 week highs. ALI gained 3.64 percent to settle at P14.25 while SMIC, the most active stock yesterday, inched up by P10 to P402.50.   Megaworld likewise went up 4.48 percent to P1.40 and so did Filinvest Land (up 6.12 percent to P1.04).

Aboitiz Power closed at P13 apiece, its highest since its listing in July 2007.

“Investors were encouraged by the positive showing of US markets last Friday,” said Prince Anthony Yeung of AB Capital Securities.

Yeung said while there is a possibility that the PSEi might breach the 3,300 level should the US markets continue to perform well.

He said the market should take a breather to ensure its steady strong growth. “The more sustainable route would be for the market to take a rest for now then move higher when the elections go smoothly, especially if first quarter 2010 results, which are due in May, are impressive,” Yueng said.

After exceeding 3,300, the next resistance was pegged at between 3,470 and 3,480.

Yeung said there are still concerns that could prevent the market from further going up. “While the elections are expected to go smoothly, there is a possibility that something wrong might happen. There are also some concerns on how the economy performed in the first quarter. Given these two concerns, the main index is seen to move flat to lower in the coming days and weeks,” Yeung said.

At the Philippine Dealing Exchange Corp. the peso touched a new 20-month high of 44.740 to $1 or a 21-centavo increase from Friday’s 44.950 to $1.

The peso opened at 44.840 before hitting a high of 44.700 and a low of 44.840 to $1. Total volume amounted to $884.63 million on an average rate of 44.746 to $1.

Meanwhile, in London, world oil prices edged higher Friday on the back of improving investor sentiment, rising stock markets and the weaker dollar, analysts said.

New York’s main contract, light sweet crude for delivery in May, added six cents to $85.45 a barrel.

London’s Brent North Sea crude for May won 43 cents to $85.23 per barrel.

“Supported by benign equity markets, sustained bullish sentiment and a slightly weaker US dollar, the oil price recouped the losses of the previous two days,” said Commerzbank analyst Carsten Fritsch.                

Europe’s main stock markets rebounded slightly on Friday, after recent sharp losses on the back of Greek debt worries, as traders eyed higher commodity prices and the upcoming US results season.