Local stocks climb on early window dressing

LOCAL EQUITIES climbed on Monday, bucking the downturn in most international markets over the weekend due to concerns on the global economy.

The 30-member Philippine Stock Exchange index (PSEi) firmed up 0.63% or 44.70 points to close at 7,109.03 yesterday, extending last Friday’s gains. The broader all-shares index also gained 0.48% or 20.80 points to 4,353.39.

“With strong economic data readings from the biggest market, Philippine shares traded cautiously higher to kick start some early window dressing even as investors questioned the growth sustainability of the largest economy,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile message.

Mr. Limlingan referred to the 3.5% growth of the United States economy during the third quarter, which beat forecasts of 3.4%. The growth, however, was slower than the second quarter’s 4.2%.

US indices fell last Friday, with the Dow Jones Industrial Average losing 1.19% or 296.24 points to 24,688.31. The S&P 500 index also shed 1.73% or 46.88 points to 2,658.69, while the Nasdaq Composite index plunged 2.07% or 151.12 points to 7,167.21.

Most Asian indices ended mixed on Monday, reflecting Wall Street’s losses last Friday.

Mr. Limlingan noted that concerns are not limited to the US, citing the weakness in Chinese firms amid the country’s ongoing trade war with the former.

“Profit growth in Chinese industrial enterprises slowed for a fifth month amid the ongoing USChina trade spat and a weakening domestic economy,” he said.

The property counter was the lone sub-index that ended with losses back home, dropping 0.48% or 16.98 points to 3,477.51. The rest went up, led by financials which rose 1.35% or 21.22 points to 1,584.78.

Holding firms advanced by 0.68% or 47.86 points to 7,005.75; services added 0.66% or 9.72 points to 1,471.31; mining and oil picked up 0.61% or 57.58 points to 9,468.80; while industrials gained 0.56% or 58.89 points to 10,581.30.

Some 552.99 million issues switched hands, resulting in a value turnover of P4.23 billion, thinner than the previous session’s P4.97 billion.

“Expect today’s low value turnover to continue to persist in the coming days especially with the long weekend ahead of us,” P2P Trade Online Sales Associate Gabriel Jose F. Perez said in an e-mail on Monday.

Mr. Perez also noted that sentiment in the US markets may continue to affect the performance of regional indices.

Net foreign selling was steady at P391.91 million, slightly lower than Friday’s P398.60 million.

Advancers outpaced decliners, 97 to 78, while 45 names remained unchanged.

The list of 20 most activelytraded stocks showed 12 advancers, including DMCI Holdings, Inc. (up 3.51% to P12.40); Universal Robina Corp. (up 2.92% to P133.80); San Miguel Corp. (up 2.19% to P168.10); and BDO Unibank, Inc. (up 1.98% to P118.30).