Wall St gains prop up share prices

MANILA, Philippines - Share prices stayed at the 7,000 level yesterday as investors take their cue from Wall St. rally.

Analysts said Wall Street’s gains continued to boost local investor sentiment.

The benchmark Philippine Stock Exchange index (PSEi) rose 76.72 points, or 1.09 percent, to end at 7,098.81, while the broader All-Shares index went up 49.71 points or 1.24 percent to finish at 4,056.08.

Jason Escartin, investment analyst at F. Yap Securities said the main reason for yesterday’s gains was the positive results in the United States stock market. “An overnight surge in Wall Street boosted sentiment,” he said.

The Dow Jones Industrial average surged 369 points, while the Nasdaq closed higher by 115 points. Similarly, the S&P 500 also closed higher by 46 points.

“Additionally, views to be discussed at Jackson Hole over the coming weekend opened opportunities for short-term plays,” Escartin said, referring to the upcoming gathering of central bankers from all over the world which may discuss the moves of the Federal Reserve. It will be held at Jackson Hole, Wyoming.

Advancers outnumbered declining stocks, 129 to 46 while 40 stocks were unchanged.

Philippine Stock Exchange chairman Jose Pardo said the rebound of the market is a welcome relief amidst the uncertainties in the global markets.

“The second quarter growth numbers highlight the resilience of the economy despite challenges abroad and we hope that investors continue to look at the Philippines as a viable investment,” Pardo said.