Stocks rebounded Thursday, boosted by positive corporate earnings and following the gains in other Asian markets.
The Philippine Stock Exchange index, the 30-company benchmark, rose 22 points, or 0.3 percent, to close at 7,816.40, as four of the six major sectors advanced.
The heavier index, representing all shares, also gained 12 points, or 0.3 percent, to settle at 4,656.88, on a value turnover of P15.6 billion. Advancers outnumbered losers, 108 to 94, while 45 issues were unchanged.
Thirteen of the 20 most active stocks ended in the green, led by oil refiner Petron Corp. which jumped 5 percent to P9.94 and Melco Crown (Philippines) Resorts Corp. which climbed 2.4 percent to P8.38. Property developer Ayala Land Inc. went up 2.1 percent to P39.40.
Food manufacturer Universal Robina Corp. fell 3.7 percent to P167.50, while sister company Robinsons Land Corp. tumbled 4.4 percent to P23.95, after the two units of JG Summit Holdings Inc. reported lower profits in the first quarter.
Robinsons Land said consolidated net income dropped 11 percent in the first quarter to P1.38 billion as real estate revenues decreased 2 percent to P4.9 billion. URC reported a 4.7-percent decline in first-quarter profit to P3.37 billion, as costs grew faster than revenues.
Meanwhile, Asian markets rose Thursday with energy firms providing strong support after a surge in oil prices, while the dollar held gains against the yen as a top Federal Reserve official reinforced expectations for further interest rate hikes.
Both main crude contracts soared almost three percent Wednesday after data showed a drop in US inventories almost three times more than forecast, fanning hopes of a jump in demand as the American holiday driving season kicks off.
Traders have also been buoyed by hopes that Opec and Russia’s much-vaunted output cuts that started in January appear to be gaining traction, with the key producers also likely to extend the agreement past its end-June deadline.
All of which is welcome news for oil traders after last week’s plunge in prices that came on the back of worries about rising US, Nigeria and Libya output, and a slowdown in key market China.
“We saw the biggest draw in inventories for the year last week with stockpiles down more than five million barrels,” said Greg McKenna, chief market strategist at AxiTrader.
“And it looks like OPEC’s production cut is finally biting,” he added.
Among Asian energy firms Hong Kong-listed CNOOC jumped 1.8 percent and PetroChina climbed 1.3 percent, while Woodside Petroleum added 0.2 percent in Sydney as Santos gained 1.5 percent. Inpex added 0.8 percent in Tokyo.
Jeffrey Halley, senior market analyst at Oanda, added: “With the OPEC production cuts almost certain to be extended, oil may well have dodged the worst for now.”
However, he warned “it would be premature to call a bottom in prices as US production continues to ramp up along with that of … Opec members Libya and Nigeria [who are exempted from the output cuts].”
On equities markets, Tokyo ended 0.3 percent higher and Hong Kong jumped 0.5 percent in the afternoon, putting it on course for a fourth-straight gain and near two-year highs.
Sydney added 0.6 percent, Seoul gained 1.2 percent to clock up another record high, while Singapore was 0.6 percent higher. Taipei also put on a strong show. With Bloomberg, AFP