PSEi ends higher

THE LOCAL stock barometer swung back to positive territory yesterday after a three-day profittaking, still driven by optimism on local corporate earnings.

The main-share Philippine Stock Exchange index (PSEi) gained 27.05 points or 0.43 percent to close at 6,322.60 even as regional markets traded with a mixed sentiment.

“I think we’re seeing a healthy and steady rise in the market,” said Gus Cosio, president of First Metro Asset Management Inc. “Stock selection remains to be key.”

The day’s upswing was led by the industrial and holding firm counters, which both gained more than 1 percent. On the other hand, the services, mining/oil and property counters declined.

Value turnover amounted to P8.07 billion. Despite the overall index gain, market breadth was negative as 82 decliners edged out 80 advancers while 43 stocks were unchanged.

The PSEi was led higher by Alliance Global Inc. (+3.83 percent) and Universal Robina Corp. (+2.7 percent) while ICTSI, Aboitiz Power and First Gen Corp. all rose more than 1 percent.

Outside of the PSEi, a notable gainer for the day was Ever Gotesco (+48.72 percent) as a block sale on the stock fueled backdoor-listing speculations. However, the company told the PSE it was not aware of any reason behind this extraordinary rise.

On the other hand, the PSEi’s gains were tempered by the profit-taking on Megaworld (1.44 percent) while shares of SM Prime, JG Summit, PLDT, Metrobank, Jollibee, Metro Pacific Investments Corp., Ayala Corp., BDO and Ayala Land also declined.

“The PSEi has been posting higher lows since midDecember and just recently (this February) broke out of amajor downtrend that began in May 2013 amid positive full-year 2013 earnings and 2014 guidance, as well as economic outlook. News reports have recently indicated a shift in focus back to Philippine stocks amid attractive valuations,” local stockbrokerage DA Market Securities said.