Buying in blue chips lifts PSEi 1% to 14-month high

The PSEi soared to its highest level in over 14 months on Thursday as investors positioned in blue chips that will be have weightier influence on the MSCI following a rebalancing of the global measure of performance of Philippine stocks. 

 

The benchmark PSEi climbed 74.76 points or 1.07 percent to 7,061.00 at closing. The All Shares index rose 23.25 points or 0.56 percent to 4,200.80. This was the index's highest level in over 14 months since it closed to 7,097.71 in May 27, 2013.

 

Over 2.7312 billion shares valued at P11.2016 billion were traded. Advancers led decliners, 98 to 83, while 48 stocks were unchanged.

 

Philippine Long Distance Telephone Company was the top index gainer for the day after its MSCI weighting was increased to 7 percent, COL Financial Group Inc. research head April Tan told GMA News Online.

 

Ayala Land Inc., Ayala Corp. and Energy Development Corp. were also rebalanced and given more weight on the MSCI Philippines Index, she said.

 

"The increased weight of the stocks had a favorable impact on their share prices and spilled over on to other stocks," Tan said.

 

The rebalancing of the MSCI Philippines index, a performance measure for large and mid-cap issues on the Philippine Stock Exchange, will take effect September 1.

 

The current local and overseas conditions have also provided an upbeat sentiment in the market, Summit Securities Inc. president Harry Liu said in a separate phone interview.

 

"The companies are doing well and the global problem in Ukraine and the Middle East have been quiet," he said.

 

While the talk of a Constitutional change to let President Bengino Aquino III created some buzz, the news had "no bearing yet" on the market, Liu noted.

 

"The Cha-Cha is bearing positive news in terms of continued growth of the economy but it's still just news and you need the clamor of the whole country before that happens," he said.

 

If it had any effect on the PSEi, it would only be "sentiment-wise," Tan added. – VS, GMA News