PSEi rallies after positive US corporate earnings
PHILIPPINE STOCKS rallied for the fifth straight day on Thursday as investors welcomed positive corporate earnings in the US.
Local markets will be closed on Friday for the Chinese New Year.
The benchmark Philippine Stock Exchange index (PSEi) ended the shortened trading week 0.29% or 20.12 points higher at 6,850.16. The broader all-share index gained 0.2% or 7.45 points to 3,574.21.
“Philippine shares rose for another trading session as investors digested positively the health of the US economy through more fourth-quarter earnings results,” Luis A. Limlingan, sales head at Regina Capital Development Corp., said in a Viber message.
“The fourth-quarter earnings season has been stronger than expected, giving investors confidence that the healthy economy could continue driving corporate profits,” he added.
The Dow Jones Industrial Average Index rose by 0.41% or 156 points to 38,677.36, while the S&P 500 Index improved by 0.82% or 40.83 points to 4,995.06. The Nasdaq Composite added 0.95% or 147.65 points to 15,756.64, while the New York Stock Exchange Composite Index gained 0.45% or 76.84 points to 17,212.32.
The market appeared to have corrected at close, Jovis L. Vistan, vice-president at AB Capital Securities, Inc., said in a Viber message.
“The market rallied and briefly touched the 6,900 level before pulling back at the close,” he said. “The correction was probably due to liquidity concerns as we celebrate the Chinese New Year.”
“This may also be the start of a much-needed healthy technical correction. Nonetheless, downside seems to be limited as we see support at the 6,700 level,” he added.
Sectoral indexes were mixed. Financials gained 1.6% or 31.08 points to 1,964.93, while property added 0.2% or 5.94 points to 2,969.79. Services gained 0.09% or 1.58 points to 1,713.53.
On the other hand, mining and oil fell by 1.1% or 100.51 points to 8,988.38, while holding firms dropped by 0.34% or 22.47 points to 6,421.34. Industrials shed 0.001% or 0.13 point to 9,190.79.
Value turnover rose to P6.89 billion with 535.76 million issues switching hands, from 829.44 million shares worth P6.33 billion on Wednesday.
Advancers beat decliners 106 to 91, while 46 names were unchanged. Net foreign buying fell to P953.68 million from P1.21 billion.