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Business

Market extends gains on positive investor sentiment

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Share prices closed 0.74 percent higher yesterday, extending gains to a third day on hopes the US Federal Reserve will soon call a halt to its rate hike cycle, dealers said.

They said sentiment was much more positive after a gain of 4.52 percent Friday following the latest Fed statement on the economy was taken to mean US interest rates had peaked, or were near to peaking out.

The composite index finished up 16.05 points to 2,194.84, its highest closing level for nearly a month, after trading between 2,178.79 and 2,196.52. Volume was 1.99 billion shares worth P1.16 billion.

The broader all-shares index advanced 5.51 points to 1,375.40.

Gainers outnumbered losers 38 to 30, with 45 stocks unchanged.

"The market seems to have reversed itself," said Harry Liu of Summit Securities. "We’re now seeing a recovery after losing heavily in the past two months."

Despite yesterday’s gains, the composite index is still around 15 percent below this year’s peak of 2,589.17 points reached on May 8. That was also the best level in nearly seven years.

The Fed raised its key federal funds rate by 25 basis points for the 17th time Thursday to 5.25 percent but investors cheered the Fed’s less hawkish outlook, taking it as a sign that it would soon stop increasing rates.

Philippine Long Distance Telephone Co. (PLDT) ended up P45 to P1,875.

Property stocks continued to recover after falling sharply in previous weeks because of worries higher interest rates would dampen sales.

Ayala Land gained 50 centavos to P12.

Mining shares also closed higher after prices of gold and other precious metals rose trading Friday, dealers said.

Philex A shares, restricted to Filipinos, gained 10 centavos to P4.35, while its B shares, which foreign investors can buy, also advanced 10 centavos to P4.35.

San Miguel A was steady at P65 while its B shares fell P1.50 to P71.50.

Philex Class A shares, equity reserved for Filipinos in the country’s nation’s largest metal producer by market value, rose 10 centavos, or 2.4 percent, to P4.35. Its Class B shares, which have no ownership restrictions, gained 10 centavos, or 2.4 percent, to P4.35.

Class A shares of Lepanto, the nation’s second-largest metal mine by market value, added one centavo, or 3.5 percent, to 30. Its Class B shares advanced one centavo, or 2.9 percent, to 35, the highest since June 1. AFP

AYALA LAND

CLASS A

FEDERAL RESERVE

HARRY LIU OF SUMMIT SECURITIES

ITS CLASS B

PHILEX A

PHILEX CLASS A

PHILIPPINE LONG DISTANCE TELEPHONE CO

SAN MIGUEL A

SHARES

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