PSEi continues rise on positive economic data

PHILIPPINE stocks closed higher for the fourth straight time on Wednesday as investors absorbed positive economic data.

The 30-member Philippine Stock Exchange Index (PSEi) rose by 1.1% or 74.78 points to close at 6,830.04. The broader allshare index climbed by 0.78% or 27.71 points 3,566.76.

Claire T. Alviar, a research analyst at Philstocks Financial, Inc. attributed the increase to favorable inflation and job data.

The Philippine jobless rate dropped to 3.1% in December, bringing the full-year figure to 4.3%, a record low, the local statistics agency said on Wednesday.

January inflation also slowed to 2.8% from 3.9% in December and 8.7% a year earlier, the second straight month that prices were within the central bank’s 2-4% target.

Stocks likewise advanced on the back of stronger US markets, Ms. Alviar said in a Viber message. “Moreover, positive cues from the US markets, driven by strong corporate earnings, coupled with the expectation of an interest rate cut by the Federal Reserve, boosted the sentiment further.”

The Dow Jones Industrial Average Index rose by 0.37% or 141.24 points to 38,521.36 on Feb. 6; the S&P 500 Index gained 0.23% or 11.42 points to 4,954.23; the Nasdaq Composite added 0.07% or 11.32 points to 15,609; and the New York Stock Exchange Composite Index advanced by 0.77% or 130.70 points to 17,135.48.

The Philippine stock market closed higher amid lukewarm overseas sentiment, Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a Viber message. “Sentiment was also lukewarm overseas as investors parsed through another slate of quarterly results halfway through the corporate earnings season.”

Almost all of the market’s sectoral indexes closed higher except for mining and oil, which fell by 0.6% or 54.83 points to 9,088.89.

Services gained 2.13% or 35.77 points to 1,711.95; property increased by 1.63% or 47.79 points to 2,963.85; holding firms rose by 1% or 64.22 points to 6,443.81; industrials went up by 0.62% or 56.84 points to 9,190.92; and financials inched up by 0.29% or 5.6 points to 1,933.85.

“Among the index members, Ayala Corp. was at the top, increasing by 6.4%, while DMCI Holdings, Inc. lost the most by 2.37%,” Ms. Alviar said.

Value turnover rose to P6.33 billion with 829.44 million issues changing hands compared with 749.46 million issues worth P4.76 billion on Tuesday.

Advancers beat decliners 112 to 80, while 49 shares were unchanged.

Net foreign buying increased to P1.21 billion from P44.45 million worth of net foreign inflows on Tuesday.