By Keren Concepcion G. Valmonte
PHILIPPINES stocks gained Tuesday as investor sentiment improved, with more listed companies reporting better-than-expected second quarter earnings results.
The 30-member Philippine Stock Exchange (PSEi) index climbed 113.75 points or 1.76% to close at 6,560.06. The larger all-stock index added 55.55 points or 1.39% to close at 4,040.82.
“The market rebounded more than 100 points for the second consecutive session in anticipation of strong second quarter results,” said Lance U. Soledad, equity analyst at AB Capital Securities, Inc. in a Viber message.
The operator of Solaire Resort & Casino Bloomberry Resorts Corp. produced “respectable results” during the quarter, CEO Enrique K. Razon, Jr. said in a statement. The company reduced its net loss to 1.2 billion pesos from 4.7 billion pesos a year earlier.
Ayala Land, Inc. reported net profit of 3.3 billion pesos in the last quarter, up from 426 million pesos a year earlier. The profits of the AyalaLand Logistics Holdings, Corp. increased by 59% to P 247 million from the previous year.
The consolidated net profit of Semirara Mining and Power Corp. improved nearly four times to 3.98 billion pesos as its coal sales improved.
“Transaction volumes were also higher, which tells us that investors are ready to enter at current prices, although volumes are still below the daily average of around 6 billion pesos,” said Christopher John Mangun , Research Manager at AAA Southeast Equities, Inc. an email.
Turnover in value increased to 4.89 billion pesos, with 799.68 million shares changing hands. That was higher than 1.55 billion shares worth 3.54 billion pesos traded on Monday.
“Fears of an uncontrollable outbreak of the 2019 coronavirus disease (COVID-19) have been allayed by increasingly stringent restrictions that the government is slowly implementing,” Mangun said.
“This is in line with the idea that the temporary imposition of tighter restrictions is positive for investor sentiment, as long-term benefits outweigh short-term economic weakness,” he added.
All sector indices closed higher on Tuesday. The mining and petroleum industries improved by 229.21 points or 2.4% to 9,756.41, financials increased by 31.48 points or 2.25% to 1,428.01, real estate increased by 61.93 points or 2.05% to 3,081.41, holding companies gained 100.05 points or 1.55% to 6,551.62, industrials increased 136.60 points or 1.5% to close to 9,228.50, and services climbed 18.38 points or 1.18% to 1,566.19.
Advances outnumbered declines 126 to 57, while 54 stocks were unchanged.
Net overseas purchases declined to P108.49 million from P135.03 million net purchases on Monday.
Analysts expect the index to trade up to 6,600 for the remainder of the week.
“As the market is currently at the 6,500 levels, we will have to see this week whether the 6,270 support zone holds,” said Darren Blaine T. Pangan, analyst at Timson Securities, Inc. in a Viber message.