PSE in­dex closes at new high of 8,447 as bull run con­tin­ues

Manila Bulletin - - Front Page - By JAMES A. LOY­OLA

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)

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