Optimism lifts stock index

MANILA, Philippines - Positive sentiment prevailed at the stock market yesterday after last week’s lackluster performance, commencing the second quarter on a positive note, analyst said.

The benchmark Philippine Stock Exchange index (PSEi) gained 29.93 points, or 0.41 percent, to finish at 7,341.65 while the broader All Shares index was up 13.71 points, or 0.31 percent, to end at 4,413.42.

The optimism was felt across all sectors yesterday with all counters closing in positive territory albeit some indices moving by just an inch upward.

Still, all the sectoral counters – financials, industrial, holding firms, services, mining and oil and property – all closed in the green, something that hasn’t been seen in the market recently.

Total value turnover, however, remained thin at P6.24 billion. Nevertheless, market breadth was positive, 99 to 81 while 49 stocks were left unchanged.

Commenting on yesterday’s session, Regina Capital’s Luis Limlingan said “the Philippine markets got off to a fresh start in the second quarter and were undeterred that the major US stock averages ended the session lower on Friday,” he said.

He noted that in the US, consumer price inflation exceeded the Federal Reserve’s two percent annualized target for the first time in nearly five years during February.

“Finally there some interviews that gave direction to the market’s latest movements. New York Federal Reserve president William Dudley said the central bank could begin to shrink its $4.5-trillion balance sheet as soon as this year,” he said.