Share prices bounced back on Tuesday, driving the main PSEi past the important psychological level of 6,000 as investors found fresh leads to take new positions ahead of more earnings reports.
“Optimism over the fourth quarter and fiscal year 2024 corporate results helped drive the market higher following sound earnings reports,” stockbroker Philstocks Financial Inc. said in a market recap.
Luis Limlingan, managing director at Regina Capital and Development Corp., said investors were also encouraged by the signing of the implementing rules and regulations of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.
The law provides a new tax incentives regime that is globally competitive, investment-friendly, predictable and accountable.
The PSEi rose 101.48 points or 1.69 percent to 6,094.96. The broader All Shares index advanced 67.78 points or 1.88 percent to 3,678.94.
Gainers outnumbered losers 101 to 72, with 64 stocks unchanged. Trading value hit more than P6.3 billion.
Only the “miners” closed in negative territory, losing 0.17 percent, while the properties outperformed by 3.32 percent, Philstocks said.
Philstocks analyst Peter Garnace said investors bought into companies that were expected to post encouraging financial results in the days to come, particularly stocks like Aboitiz Power Corp. that returned to the list of top traded stocks.
“For Aboitiz Power, I think investors are anticipating good 2024 earnings. They are positioning ahead of its release. Additionally, market participants are expecting dividends from Aboitiz Power,” he said.
Lender Maybank emphasized that emerging yield plays are coming to the fore as the PSEi is coming from “continued weakness” — down 8 percent year-to-date.
“We could see attractive dividend yields at current levels that could provide support to battered names. Note that the PSEi is now trading at only 9 times price to earnings ratio, while our index target is 7,000,” according to Maybank.
Most actively traded SM Prime Holdings Inc. gained P1 to P22.85. Ayala Land Inc. rose P1.15 to P23.55. BDO Unibank Inc. advanced P4.40 to P143. International Container Terminal Services Inc. was steady at P350. Bank of the Philippine Islands rose P1 to P129. Globe Telecom Inc. gained P30 P2,300. Jollibee Foods Corp. gained P4 to P257. Metropolitan Bank and Trust Co. advanced P0.75 to P74. Ayala Corp. rose P1.50 to P551.50. Aboitiz Power Corp. gained P1.60 to P43.60.
