Wall St gains, Feb factory data raise shares to 6,900

THE rally on Wall Street and positive manufacturing data help the stock market advance for the third straight trading day on Tuesday.

The bellwether Philippine Stock Exchange index (PSEi) gained 0.68 percent or 46.57 points to close at its intraday high of 6,919.54 while the

broader All Shares added 0.35 percent or 14.52 points to finish at 4,179.92.

Philstocks Financial Inc. senior research analyst Japhet Tantiangco credited Tuesday’s bounce to overnight gains in US markets and the steady expansion of the country’s factory output.

The Dow Jones, S&P 500 and Nasdaq surged by 1.95 percent, 2.38 percent and 3.01 percent, respectively.

London-based research company IHS Markit reported on Monday that the country’s closely watched Purchasing Managers’ Index (PMI) remained at 52.5 in February, its highest in 25 months.

Trading activity also improved as net value turnover hit P9.07 billion, higher than Monday’s P7.72 billion.

But foreign funds continued to flee, with net foreign selling amounting to P336.95 million, bringing its 10-day average to P827.71 million.

Despite ending higher, AAA Equities

Head of Research Christopher Mangun noted that the market’s momentum was slowing down. He said investors remained worried about rising inflation and a slower economic recovery despite the government already starting its vaccination program and relaxing quarantine rules.

The main index might still test the 7,000 level before the week ends, according to him.

The indices of local sectors closed mixed, with holding firms leading gainers at 1.4 percent. Financials declined the most at 1.41 percent.

Total volume turnover was at 126.72 billion shares, valued at P9.89 billion.

Losers edged out winners, 121 to 105, while 44 securities remained unchanged.