PHL stocks up 1.64 percent on global sentiment toward Spain

By VICTOR D. SOLLORANO, GMA News

Published June 11, 2012 4:27pm

Shares on the Philippine Stock Exchange found solace in the current global uptrend fueled by the European Union’s rescue of Spanish banks on the brink of collapse.

The market has been pressured by China’s economic slow down and unencouraging economic numbers from the US, and the news about the “EU fund for Spain has somehow eased the pressure,” said Juanis Barredo, marketing vice president for CitisecOnline Brokers.

Philippine stocks have been “following policy shifts abroad… so does market sentiment follows,” Barredo added.

The main PSEi gained 81.78 points or 1.64 percent to close at 5,075.85.

“Over the weekend, US equities were up and there is now some clarity over Spain,” which helped the market, said Ghia Yuson, equities analyst for First Metro Securities Brokerage Corp.

“But the volume is quite thin, lower than the year-to-date average of around six billion,” Yuson added, noting “market strength has to be validated by its volume.”

US equities ended on Friday on a high note, with the benchmark S&P 500 index registering its best week of the year as investors returned to stocks on expectations Spain was closer to getting aid for its troubled Banks, according to Reuters.

In a separate report, Reuters noted, “Risk assets jumped on Monday after euro zone finance ministers agreed on loans to help Spain's battered banks, easing fears Madrid's banking woes could escalate into a bankruptcy crisis and compound the currency bloc's troubles with Greece. —GMA News

Tags: phlstocks, asianstocks, usstocks