PSEi soars to six-month high as marts turn bullish
THE PHILIPPINE Stock Exchange index (PSEi) soared to a six-month high on Tuesday, reflecting the stronger finish of international markets at the start of the week.
The local barometer climbed 1.47% or 111.58 points to 7,700.46 on Tuesday.
Yesterday’s finish was the bellwether PSEi’s best showing in six months or since it closed at 7,713.32 last Oct. 20, 2016.
The broader all-shares index likewise rose 1.19% or 54.07 points to end at 4,596.88.
“The market’s strength spread broadly as we saw gains across all sectors. External bullish sentiment brought by upbeat US and global markets pushed the PSEi to record a good close at 7,700,” AP Securities, Inc. equity trader Frank Gerard J. Barboza said.
US stocks rallied on Monday, tracking a relief rally that swept through Asian and European markets, after centrist candidate Emmanuel Macron won the first round of the French presidential election versus right-wing rival Marine Le Pen.
The Dow Jones Industrial Average rose 216.13 points or 1.05% to 20,763.89; the S&P 500 gained 25.46 points or 1.08% to 2,374.15 and the Nasdaq Composite added 73.30 points or 1.24% to 5,983.82.
“Investors took a closer look at what’s happening between French presidential candidates Macron and Le Pen,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said.
All sectoral subindices ended in the green, with holding firms leading the rally, rising by 2% or 154.12 points to 7,844.17, followed by services which climbed 1.55% or 24.68 points to 1,612.51. The property counter gained 1.18% or 39.16 points to 3,352.18; industrial rose 1.10% or 124.79 points to 11,418.83; financials went up 0.94% or 17.70 points to 1,896.49; and mining and oil climbed 0.81% or 96.94 points to 12,052.07.
Advancers beat decliners, 113 to 73, while 57 issues remained unchanged. Value turnover stood at P8.31 billion as 2.67 shares exchanged hands, up from Monday’s P5.15 billion.
Net foreign buying ballooned to P1.45 billion on Tuesday from just P153.94 million the previous session.
“Looks like we’re going to see the index shine bright among the Asian markets as the ASEAN (Association of Southeast Asian Nations) Summit draws the eyes of the international investment community to the country,” AP Securities’ Mr. Barboza said.
Most Southeast Asian shares rose on Tuesday with Indonesia hitting a record high as regional markets joined a relief rally in global stocks after a centrist victory in the first round of the French presidential election saw renewed appetite for risky assets.
Global stocks started off the week with gains while safe-haven assets including the yen and gold remained under pressure.
“Asian markets appear to be still lingering in the glow of relief after the French election. The jubilance in markets overnight has also added to the optimism,” said Jingyi Pan, market strategist at IG in Singapore.