PSEi closes at new record as local stocks gain further
The local stock market closed the session above 8,300 level for the first time as it rode the rising tide across all Asian stocks, which benefited from the strong US economic data and record overnight closing for Dow Jones, S&P 500 and Nasdaq indeces in New York City.
Philippine Stock Exchange index (PSEi) yesterday went up by 56.65 points, or 0.69 percent, to close at fresh record high of 8,312.93, while the wider all shares increased by 24.64 points, or 0.51 percent to 4,892.00.
Trading volume was moderate with 1.47 billion shares valued at R7.25 billion changing hands. Gainers topped losers, 105-94, with 55 issues unchanged.
It was last week when the PSEi breached 8,300 level for the first time and rose to a fresh all-time intraday high of 8,321.81 on September 21. At the close of Thursday’s trading, the PSEi was at 8,286.86 up by 67.54 points or 0.8 percent from Wednesday’s close.
"The Philippine index managed to recoup yesterday after bouncing off its corrective swing. However, we do see some room for carefulness as a number of issues are still testing support columns and badly need a show of force," COL Financial Group, Inc. Chief Technical Analyst Juanis G. Barredo said.
“A rally from the US, Europe and Asia may help in keeping some issues on its advancing sway. This may keep selective positioning up for traders, focusing on those whose momentum reads are not showing lapse or whose RSI (Relative Strength Index) reads do not yet warn of overbought concern or divergence," he added.
Except for mining and oil, which was down by 0.06 percent, or 8.60 points to 13,879.19, all the sectors were also up, led by services sector, which was up by 20.10 points, or 1.18 percent to 1,731.38.
Financials sector also increased by 20.46 points, or 1.03 percent to 1,996.97, followed by holding firms, which expanded by 0.53 points, or 44.05 percent to 8,427.25. Next to them are property, which added 14.89 points, or 0.38 percent to 3,901.92, as well as industrial, which slightly rose to 11,115.77, up by 9.25 points, or 0.08 percent.
Meanwhile, Asian markets gained Tuesday, with Tokyo closing at a two-year high following fresh records on Wall Street, as investors were cheered by the release of strong economic data.
All three US indices ended at records, with the Dow Jones Industrial Average gaining 0.7 percent Monday.
Tokyo’s benchmark Nikkei 225 index rose 1.05 percent to finish at 20,614.07 on Tuesday, its best close since August 2015, with a weaker yen boosting Japanese exporters. Analysts said the markets were unaffected by a mass shooting from a Las Vegas hotel that left at least 59 dead and hundreds injured.
“The global markets trudge on, searching for opportunities, realizing these tragedies are becoming all too commonplace,” said Stephen Innes, head of Asia-Pacific trading at OANDA.
“And as cynical as that may seem, that is the reality we've come to accept,” he added.
US manufacturing activity rose to its highest level in 13 years last month, making investors bullish about the third-quarter US earnings season which begins in around 10 days. (With AFP report)