Share prices close higher

Philippine stocks Thursday surged, bringing the measure closer to the 7,200 level. But analysts remained cautious as they noted challenges here and abroad, which had not yet been factored into domestic valuations.

The benchmark Philippine Stock Exchange index rose 1.10 percent, or 77.68 points, to close at 7,170.99, while the broader all-shares index increased by 0.86 percent, to P4,225.46. There were 103 gainers against 70 decliners, while 40 issues were unchanged.

The gain comes as the US Federal Reserve finally ended an asset purchase program, citing improving employment figures.

Jonathan Ravelas of BDO Unibank Inc. Thursday said that other domestic factors were keeping investors optimistic, like corporate earnings and low commodity prices. But he noted that the strengthening of the US economy could cap gains in equities here.

Ravelas noted that the 7,200 was a key resistance level for the PSEi.

BDO is keeping its year-end forecast of 7,000 for the PSEi, he added.

HSBC Global Asset Management yesterday reported that local equities are already overpriced.

“HSBC believes that the equity market is currently over-valued, with near term challenges not fully priced in, and thus does not present opportunities to investors,” it said.

A total of 12.4 billion shares changed hands, valued at P7.62 billion. The most actively traded stock was Philippine Long Distance Telephone Co., which declined by 1.33. It was followed by Ayala Land Inc. (up 1.53 percent) and BDO Unibank Inc. (up 0.10 percent). Miguel R. Camus

Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.

To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.

Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:

c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City,Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94

seo tools