The local stock barometer surged to the 7,200 mark on Thursday, tracking upbeat trading in the US and regional markets and buoyed by renewed foreign buying of local equities.
The main-share Philippine Stock Exchange index racked up 178.49 points or 2.54 percent to close at 7,209.44, boosted by investors’ positioning for the year ahead alongside favorable developments on the domestic fiscal front.
Joseph Roxas, president of Eagle Equities Inc., said the first quarter of any year was typically strong as fund managers take investing position. Another thing that boosted investor interest, Roxas said, was that Pres. Rodrigo Dutete did not sanction an increase in Social Security System (SSS) pension.
“It shows he will listen to economic managers and shows he is aware of repercussions (of populist moves). Even though this was a campaign promise, this shows that he will take advice from economic managers,” Roxas said.
“The realization is what was a campaign promise won’t necessarily become real when he sits in office and sees actual situation,” he added.
An increase in SSS pension payout without corresponding increase in contribution is seen to shorten the actuarial life of the state-owned pension fund.
At the local market, foreign investors were in a net foreign buying for the fifth straight session. Net inflows for the day amounted to P728 million.
All counters gained significantly, led by the holding firm counter which rose by 3.06 percent. The financial, mining/oil and property counters also surged by over 2 percent.
Value turnover for the day amounted to P10.28 billion.
There were 146 advancers that edged out 55 decliners while 32 stocks were unchanged.
The PSEi was led higher by Security Bank, which surged by 8.91 percent and was the most actively stock for the day.
Investors also picked up shares of Ayala Corp. and Jollibee, which both advanced by over 3 percent while Ayala Land, BDO Unibank, Metrobank, JG Summit and BPI gained over 2 percent.
Aboitiz Power, URC, PLDT and Megaworld all rose by over 1 percent while SM Prime, Metro Pacific and Meralco also gained.
