October 23, 2017, 1:58 pm
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Stocks pierce through 8,400 level

Share prices ended higher Thursday as investors took to buying anew.

The Philippine Stock Exchange index was up 44.34 points to 8,402.81, a 0.53 percent hike. 

All shares rose 20.40 points to 4,928.28, a 0.42 percent hike. 

Losers edged gainers 122 to 82 with 48 stocks unchanged. 

Trading turnover reached P8.21 billion, with more than half of the amount courtesy of foreign funds at P4.66 billion. 

Foreigners, however, were a net buyer of merely P247.24 million.

First Metro Securities Brokerage Inc. said the market is currently trading at the 8,200 to 8,400 range as the market digests developments for the week. 

Luis Limlingan, managing director at Regina Capital Development Corp., said the market’s rise was driven “as the minutes from the Federal Open Market Committee (FOMC) meeting confirmed what was on many analysts’ mind.” 

“The minutes from the September FOMC meeting discussed near-term effects from Hurricanes Harvey, Irma, and Maria but suggested broadly unchanged views on the underlying pace of growth and inflation. ‘Many’ participants continued to believe ‘cyclical pressures’ would ‘show through to higher inflation’ in the medium term. However, on net, FOMC participants adjusted their assessment of risks for inflation to the downside,” he said. 

“The minutes also confirmed the near-term hawkish message from the September statement, where 12 out of 16 participants projected a third 2017 rate hike. Many participants thought that another rate increase in this year was likely to be warranted “if the medium term outlook remained broadly unchanged’. Accordingly, we continue to place the subjective odds of a December hike at 80 percent,” he added.

Joey Roxas, Eagle Equities Inc., president, meanwhile said investors are also in a reinvesting spree after the tender-offer at Energy Development Corp.

Roxas said “easily P20 to 30 billion” of the P65 billion worth of funds that flowed through the tender-offer in EDC shares, which are purely local, are reinvesting back into the index stocks. 

“October is normally not a good month. But this one will probably not a typical October because of the EDC factor. Remember that EDC is a long-term stock. So the funds which were able to sell are going back to the index,” he said.
  
Most actively traded Ayala Corp. was up P25 to P1,077. Ayala Land Inc. was up P0.30 to P42.80. SM Prime Holdings Inc. was up P1.05 to P35.95. SM Investments Corp. was up P14 to P942.Manila Electric Co. was up P6 to P292.  
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