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Monday, April 21, 2014

PSEi pierces 6,700-level as local, foreign funds position ahead of Q1 earnings

Share prices on the Philippine Stock Exchange extended gains for the third straight day Monday, and the PSEi climbed over 6,700 as local and foreign fund managers anticipate good numbers from first quarter corporate results.

The benchmark PSEi climbed 96.33 points or 1.44 percent to 6,767.51. The broader All Shares index increased by 50.74 points or 1.26 percent to 4,063.77.

More than 1.49 billion shares valued at P8.78 billion were traded. Gainers eclipsed losers, 123 to 54, while 39 issues were unchanged.

"The two-day holiday for the market prompted aggressive buying today," Asiasec Equities Inc. market strategist Manny Cruz told GMA News Online.

Philippine financial markets were closed on Thursday and Friday for a Holy Week break.

Cruz said there were no exceptional news that led the index to pierce the 6,680 critical resistance level but investors were upbeat about first quarter corporate earnings.

"Both foreign and local funds took big positions ahead of first quarter earnings results towards the tail-end of April or the start of May," he said.

"Consensus growth is 7 percent but early indications show companies may be able to surpass that," he added.

In Asia, stock markets started the week on a subdued note on Monday, as tensions in Ukraine kept investors cautious amid an absence of catalysts as several markets remained closed for the Easter holiday, Reuters reported.

Except for the Philippine market, "the region remains in holiday mood as some were only closed on Friday," Cruz said.

Earlier, Unicapital Securities Inc. research head Lexter Azurin said the local market played catch-up after the S&P 500 went up big time last Thursday.

US stocks ended a holiday-shortened week – market was closed for Good Friday – with mostly modest gains on Thursday, though the S&P 500 notched its biggest weekly advance since July as Morgan Stanley and General Electric rallied after strong results, Reuters said in a separate report.

Cruz said the next resistance level is pegged at 6,880. "The market has enough steam to break this level," he said.

- GMA News

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