Business optimism spills over to stocks

MANILA, Philippines — A turnaround in business sentiment during the fourth quarter spilled over to the stock market, pushing the main index back to the 7,200 territory.

The benchmark Philippine Stock Exchange index or PSEi finished strong yesterday, closing at 7,246.16 or 91.73 points (1.28 percent) higher than Thursday’s close.

Similarly, the broader All Shares index added 47.81 points (1.11 percent) to end at 4,318.73.

All subsectors finished higher, led by property, mining and oil and holding firms.

In a market report, DA Market Securities said the property sector led the gainers due to the improved outlook for the fourth quarter, especially with strong expectations on the reopening of the economy.

Total value turnover reached P9.8 billion. Market breadth was positive, 155 to 77, while 40 issues were unchanged.

Traders said investors reentered Philippine equities following disappointing news in the US.

“Investors flocked back into the Philippine market as US stocks ended flat Thursday due to disappointing unemployment data and ongoing stimulus package debates,” said Luis Limlingan of Regina Capital.

UCPB Securities said the PSEi refused to move higher than its 7,263 high last Nov. 23 but ended the week still stronger.