Stocks climb as buy­ing picks up ahead of ASEAN

Business World - - THESTOCK MARKET - P.P.C. Marcelo

THE Philip­pine Stock Ex­change in­dex (PSEi) bounced back on Thurs­day after two days of down­ward move­ments, lifted by earn­ings re­sults, but fell short of its pre­vi­ous high.

The main in­dex closed at 8,519.82, up by 11.33 points or 0.13%, miss­ing the lat­est high of 8,523.07 recorded on Mon­day.

The all- shares in­dex closed at 4,979.82, up by 8.79 points or 0.17%.

“The buy­ing mo­men­tum con­tin­ued…ahead of the ASEAN (As­so­ci­a­tion of South­east Asian Na­tions) Sum­mit and more earn­ings an­nounce­ments,” Regina Cap­i­tal De­vel­op­ment Corp. Man­ag­ing Di­rec­tor Luis A. Lim­lin­gan said in a text mes­sage.

Jervin S. de Celis, eq­ui­ties trader at Tim­son Se­cu­ri­ties, Inc. said the mar­ket is still con­sol­i­dat­ing, but the earn­ings re­sults of big play­ers have been key for the PSEi stay­ing above the 8,500 mark.

“In­vestors are wait­ing for a ma­jor cat­a­lyst — that’s why the in­dex has been con­sol­i­dat­ing for the past three days. The earn­ings dis­clo­sures of blue- chip stocks are also keep­ing our mar­ket above the 8,500,” Mr. De Celis said in a text mes­sage.

Lead­ing firms such as DMCI Hold­ings, Inc., SM In­vest­ments Corp., and Metro Pa­cific In­vest­ments Corp. re­ported good earn­ings for the third quar­ter.

Mr. De Celis said the re­lease next week of the gross do­mes­tic prod­uct (GDP) data for the third quar­ter might be the cat­a­lyst needed by the mar­ket. “We have the GDP re­port by next week so we might see a ma­jor move on the day of the an­nounce­ment.”

Among the sec­tors, hold­ing firms, ser­vices, and prop­erty posted gains yes­ter­day. Hold­ing firms closed at 8,707.47, up by 55.81 points or 0.64%. Prop­erty rose 12.52 points or 0.31% to 4,037.43 and ser­vices climbed 4.29 points or 0.25% to 1,700.86.

Mean­while, min­ing and oil led de­clin­ing coun­ters as it plunged by 645.47 points or 4.9% to end at 12,537.42. Fi­nan­cials closed at 2,086.71, down by 9.86 or 0.47%, and in­dus­tri­als dropped 19.91 points or 0.18% to close the ses­sion at 10,994.15. Losers out­num­bered ad­vancers at 114 to 89, while 37 names were un­changed.

Value turnover reached P9.32 bil­lion, ris­ing from the pre­vi­ous day’s P7.67 bil­lion, with 1.5 bil­lion shares chang­ing hands.

For­eign­ers sold their share­hold­ings, with net out­flows recorded at P238.76 mil­lion, a re­ver­sal of Wed­nes­day’s net for­eign buy­ing of P144.67 mil­lion.

Mean­while, other South­east Asian stock mar­kets were largely buoy­ant on Thurs­day, with Sin­ga­pore inch­ing higher to a fresh two-year high and Vietnam set to ex­tend its gain­ing run to the fifth ses­sion, scal­ing a 10-year peak.

Record-set­ting gains overnight on Wall Street brought cheer to broader Asia, lift­ing MSCI’s in­dex of Asia-Pa­cific shares out­side Ja­pan to a fresh 10-year high.

Mean­while, data show­ing sur­pris­ingly strong pro­ducer prices in China last month and a pickup in con­sumer in­fla­tion un­der­scored the re­silience of the econ­omy. • with

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