RP shares rise to 9-mo high, buoyed by May polls, Dow Jones

Philippine stocks rallied in post-election trading Tuesday, buoyed by a relatively peaceful polls and robust markets overseas that lifted the main index close to a nine-month high. The Philippine Stock Exchange index (PSEi) went up by 120.87 points or 3.85 percent to finish at 3,262.93, its biggest gain in almost nine months. At one point in the session, the index posted a 156-point intraday gain. Volume turnover was high with 1.74 billion stocks worth P5.9 billion changing hands. Gainers outnumbered losers, 117 to 12, with 32 unchanged. "It is a confluence of several factors. First, finally elections are over. That's one less headache for us, and it has been peaceful and orderly. Second, the financial markets [overseas] also surged last night. [The Dow Jones] was up by more than 400 points, mainly because [of commitments to do something about the Europen crisis]," analyst Astro del Castillo of First Grade Holdings said in an interview. The market is set to surge this week, fueled by a stream of positive news from the domestic and international fronts, Del Castillo said. The Dow Jones industrial average surged by 404.71 points in New York Stock Exchange trading overnight, boosted by a $1-trillion rescue package was pledged by the European Union and the International Monetary Fund to keep Greece from further sinking in its own economic quagmire. The Dow's overnight gains were its highest since March 23, 20091. The Philippine Stock Exchange’s all-share index also gained 69.65 points or 3.5 percent to close at 2,036.42, with the subindices rising by 4 percent on average across the board. Holding firms surged by 109.99 points or 5.56 percent to close at 2,087.86, while financial stocks went up by 32.31 points or 4.86 percent to close at 697.4. Property stocks likewise increased by 48.03 points or 4.22 percent to finish at 1,186.91. Mining and oil stocks closed 356.33 points or 4.21 percent higher at 8,827.22. Industrial firms gained 189.05 points or 3.86 percent to close at 5,083.56, followed by service stocks which went up by 29.07 points or 1.99 percent to 1,490.78. Top gainer Zeus Holdings Inc. advanced by 3 centavos to close at 22 centavos, while loser Active Alliance Inc. dropped P3 to P8. The 20 most active stocks all posted gains, led by Philippine Long Distance Telephone Co., which gained P30 to close at P2,495. —VS, GMANews.TV