Index rises ahead of corporate, GDP data

MANILA, Philippines - The main composite index gained more momentum yesterday, staying above the 7,100 level ahead of the release of third quarter corporate earnings data and third quarter gross domestic product report.

The Philippine Stock Exchange index (PSEi) closed at 7,117.78, up  24.88 points or 0.35 percent, while the broader All Shares index moved up by 20.14 points or 0.49 percent to finish at 4,104.09.

All other indices finished in positive territory, with mining and oil and the industrial barometers leading the gains.

Justino Calaycay of Accord Capital said the PSEi has allowed investors an average opportunity trading range of between 3.5 percent and five percent for a period of between four to 10 days. The buy zone is defined as a day-or-two following a drop below the 7,000 mark with the sell area at above 7,150, approaching 7,200.

He said the index may return to the 7,200 levels, possibly restoring the market to year to date gains ahead of the release of third quarter corporate earnings and the third quarter gross domestic product (GDP) report.

“The last trough pulled the measure to the 6,920-line five days ago. It has since rebounded to 7,092.90, or roughly 2.85 percent, with the measure rising in four of the five days. The most recent peak is at 7,150, giving near-term trades a little under 1.0 percent upside – based on the earlier mentioned statistics,” Calaycay said.

Value turnover reached P5.69 billion. Decliners edged out advancers 93 to 82 while 42 stocks were left unchanged.