PSE index closes at new high of 8,447 as bull run continues
The Philippine Stock Exchange ended its record-setting week on a high note by closing at a fresh peak as market participants take position ahead of third quarter earnings and spurred by positive US economic developments.
The PSE index rose 45.13 points, or 0.54 percent, to close at 8,447.94 although sectoral indices were split with the Financials, Industrial and Property sectors in the green while Holding Firms, Services and Mining and Oil were in the red.
A total of 862.16 million shares worth P9.56 billion were traded on Friday as losers beat gainers 106 to 91 while 45 issues were unchanged.
BDO Chief Market Strategist Jonathan Ravelas said that, aside from prospects of better corporate earnings, “sentiments were further supported as other regional markets were up too.” He said resistance is now at 8,500.
“Philippine stocks traded in fresh new territory, on optimism that US economic data will embolden expectations of gradual rate hikes by the Federal Reserve,” said Regina Capital Development Corporation President Marita Limlingan.
She added that, “the US, later Friday, will publish data on consumer prices and retail sales for September. Fed minutes released Wednesday showed several policy makers looking for stronger evidence of price gains before sup-
porting a third interest-rate increase this year.”
Southeast Asian stock markets also rose, drawing confidence from upbeat global investor sentiment, with Singapore underpinned by data showing faster-than-expected quarterly economic growth.
China’s trade data showed growth in exports and imports accelerated in September, with imports beating expectations, underscoring resilience in the country’s economy.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 percent, having gained 3.6 percent so far this month.
“The Chinese trade data has had a positive impact on markets, key countries in Asia are now major trading partners with China,” said Joel Ng, an analyst with Singaporebased KGI Securities.
Meanwhile, Asian investors headed into the weekend cautiously upbeat on Friday after US traders took a breather from their recent run of records while uncertainty about Donald Trump’s tax plans are keeping the dollar reined in.
Wall Street’s three main indexes stepped back after clocking up a number of alltime highs in recent weeks fuelled by hopes for the earnings season and confidence the US economy is in good shape.
But dealers across Asia built on the previous day’s gains, with Tokyo pushing on after hitting a 21-year high earlier in the week.
Japan’s Nikkei rallied one percent, although embattled Kobe Steel fell nine percent on a report that its widening quality scandal has spread to more than 30 foreign customers, including Boeing and General Motors. the firm has shed more than 40 percent since the story broke last weekend.
Sydney climbed 0.3 percent and Singapore added 0.5 percent, while Shanghai ended 0.1 percent higher and Hong Kong was 0.1 percent up. (With AFP report)