Earnings lift index for 3rd straight day

Share prices rose for a third straight session yesterday, bringing the main index to its highest level in nearly a month, as positive earnings results from blue chip stocks buoyed the market.

“The PSE index continued to climb, gaining 67.78 points (up 1.07 percent) to close at 6,430.087 despite tensions between the US and China over Taiwan,” AB Capital Securities said in a commentary. Claire Alviar of Philstocks Financial said the local bourse got a lift from earnings reports of index heavyweights, particularly the 3.38 percent gain of SM Investments Corp.

She said since the market has breached the 6,400 resistance level, it will continue to test that level in the coming days.

“If the market would be able to stay above that level, then the next resistance is pegged at 6,600 level,” she said.

The broader All Shares index was not far behind, closing at 3,463.83, up 25.24 points or 0.74 percent.

Total value turnover reached P6.5 billion even as market breadth was negative, 89 to 88, while 52 issues were unchanged.

Around Asia, stock markets were mostly higher as traders watched for signs trade might be disrupted by US-Chinese tensions over an American lawmaker’s visit to Taiwan.

Markets advanced after Beijing announced a ban on imports of some Taiwanese goods but no immediate major penalties following the arrival of Speaker Nancy Pelosi of the US House of Representatives. The mainland’s ruling Communist Party claims Taiwan as part of its territory and rejects foreign official contact with the self-ruled island democracy.

“The real show of force by China is still to come,” said Clifford Bennett of ACY Securities in a report.

Wall Street’s benchmark S&P 500 index lost 0.7 percent on Tuesday after the Labor Department said American employers posted fewer job openings than expected in June following interest rate hikes to cool surging inflation.

Investors worry aggressive efforts by the Federal Reserve and other central banks to tame inflation that is running at multi-decade highs might derail global economic growth.