PSEi opens strong on bullish earnings outlook

Philippine stocks opened the week strong as investors continued to buy issues in anticipation of strong corporate earnings results in the last quarter. 

 

The benchmark PSEi gained 44.95 points or 0.73 percent to 6,158.61 as of 10:08 a.m. Monday. The broader all shares index added 25.36 points or 0.68 percent to 3,730.92. 

 

“The market's rise is earnings driven,” said Lexter Azurin, head of research at Unicapital Securities Inc. “Investors are optimistic that earnings results will exceed initial estimates.”

 

Azurin also said buying sentiment was supported by the rise on Wall Street over the weekend. 

 

On Friday in New York, the Dow Jones Industrial Average index surged 126.80 points to 16,154.39 and the S&P 500 index inched higher by 8.80 points to 1,838.63. 

 

Reuters reported that the three major US stock indexes scored their biggest weekly percentage gains for the year. The Dow and the S&P 500 each rose 2.3 percent week-on-week, while the Nasdaq climbed 2.9 percent. 

 

On the local front, Azurin said the rise of the PSEi “could be sustained,” noting that the market is poised to re-test a resistance of 6,200. —KG, GMA News