S&P upgrade, positive earnings drive PSEi back in 7,800-level

Philippine equities prices climbed for the third consecutive trading day on Monday, closing just above the 7,800 level on the back of a recent credit outlook upgrade, and the release of positive corporate earnings.

The main PSEi gained 98.23 points or 1.27 percent to close at 7,819.25. The broader All Shares grew by 51.33 points or 1.10 percent to 4,723.16.

“The market was up by more than 90 points today because there are a number of factors. One is the upgrade in outlook by S&P credit rating,” Aniceto Pangan, equities trader at Diversified Securities Inc., said.

S&P Global Ratings last week upgraded its Philippine outlook to “positive” from “stable,” citing improvements in fiscal policies which could spur growth.

Pangan noted the market was on window dressing for the end of the month and corporate results were largely positive during the first quarter of the year.

“You have the continued positive earnings shown by different companies,” he said.

Earnings will continue to sway the market, Pangan noted, saying investors will also take into consideration the March inflation data which will be released on Friday, May 4.

Foreign funds bought P3.386 billion of shares and sold P3.992 billion for a net selling position of P605.439 million.

More than 974.733 million shares, valued at P6.414 billion, changed hands. Advancers led decliners, 130 to 84, and 45 issues were unchanged.

(GMA News Online)