Stocks rise to track regional marts ahead of Fed
LOCAL STOCKS moved up in anticipation of the release of the minutes of the latest meeting of the Federal Open Market Committee (FOMC) and with US markets closed for a holiday.
The bellwether Philippine Stock Exchange index climbed by 0.20% or 16.19 points to close at 7,846.54 on Monday.
The broader all shares index finished at 4,746.33, up 0.17% or 8.30 points.
“Asian stocks entered the week rather meekly as trades in the wider Asia-Pacific region opened amid a still uncertain weekend election result in Australia. Philippine shares however managed to buck the trend as it opened on the high side.,” said A&A Securities Inc., in a statement.
“US markets were closed and Asian markets were trading positively since they were waiting for the FOMC minutes of the meeting,” Luis A. Limlingan, managing director of Regina Capital Development Corp. said in a phone interview.
“The US market rose and the other markets followed,” said research head at Unicapital Securities, Inc., Lexter L. Azurin over the phone.
Mr. Azurin added that dissipating concerns of an economic fallout after the United Kingdom’s vote to leave the European Union and the growing probability of a delay in the Federal Reserve’s planned increase in interest rates may have contributed to the market’s rise.
Most subindices ended higher. The mining and oil counter led the charge as it gained 1.35% or 152.94 points to 11,442.48.
Mr. Azurin attributed the sector’s gains to the recovery of global commodity prices for the past few days.
This was followed by property, which rose 0.70% or 24.27 points to 3,468.07. Financials increased 0.26% or 4.59 points to 1,768.40; services gained 0.22% or 3.71 points to 1,659.46 points; and holding firms went up 0.21% or 16.13 points to 7,664.04.
The industrial counter was the lone counter in the red as it declined by 0.10% or 11.92 points to 11,914.72.
“I think the administration wants to clamp down on several industries din,” Regina Capital’s Mr. Limlingan said, adding that investors may have seen possible risk of the government’s plan to review industrial companies.
Advancers beat decliners, 103 to 97, respectively, while 40 names were unchanged.
Value turnover dropped to P7.55 billion on Monday from Friday’s P11.16 billion, with 2.13 billion shares changing hands.
Foreigners remained net buyers, but net purchases declined to P515.64 million from Friday’s P1.97 billion.
Southeast Asian stock markets were trading higher on Monday, tracking broader Asian shares, while activity across much of the region was subdued due to the US Independence Day holiday.
MSCI’s broadest index of AsiaPacific shares outside Japan was up 0.6% after Wall Street logged its fourth straight day of gains on Friday. Investors are awaiting a raft of data this week including US non- farm payroll numbers due on Friday.