Stocks climb as Wall Street records fresh highs

LOCAL STOCKS extended their gains on Wednesday, with the main index as well as the sector counters finishing higher on the back of positive performance of overseas markets overnight, analysts said.

The Philippine Stock Exchange index (PSEi) managed to move up toward the end of the trading session to close higher by 21.77 points or 0.29% to 7,304.45 on Wednesday.

The broader all shares index rose by 7.12 points or 0.16% to 4,411.71.

“Philippine markets climbed up along with US stocks which closed at fresh record highs, boosted by encouraging retail sector earnings,” said Luis A. Limlingan, business development head at Regina Capital Development Corp.

Mr. Limlingan said: “Markit’s seasonally adjusted ‘Flash’ Manufacturing Purchasing Managers’ Index (PMI) for February signaled that manufacturing business conditions improved at a slightly slower pace than the near-twoyear peak seen in January.”

“The PMI printed at 54.3 from 55.0. Softer output and new order growth were the main factors weighing on the headline PMI reading. The pace of economic growth in the eurozone improved markedly in February,” he added.

US stocks rose to fresh record highs on Tuesday, boosted by strong earnings reports from Wal-Mart and Home Depot and continued optimism about the economic agenda of President Donald J. Trump.

The Dow Jones Industrial Average rose 118.95 points or 0.58% to 20,743; the S& P 500 gained 14.22 points or 0.60% to 2,365.38; and the Nasdaq Composite added 27.37 points or 0.47% to 5,865.95.

All three indices tallied closing all-time highs, with the Dow notching a record for an eighth straight session.

Locally, all sectoral indices closed higher led by mining and oil, which gained 163.77 points or 1.34% to 12,388.72. The other sectors posted an increase of less than 1%.

Value turnover improved to P7.25 billion from P5.73 billion the other day, with 1.07 billion shares changing hands.

But more stocks retreated at 101 against 88 gainers, with 52 shares closing unchanged.

Net foreign selling also widened to P1 billion on Wednesday from the P558.18- million net outflow seen the previous session.

Southeast Asian stock markets were largely flat on Wednesday, except Singapore which gained tracking US stocks that rose to record highs on Tuesday driven by strong earnings.

Stellar results by consumer stocks took Wall Street higher while the US dollar strengthened on hawkish comments by the US Federal Reserve on Tuesday strengthening the case for rate hikes to remain on track.

Singapore stocks snapped two days of losses, rising 0.5%, led by the oil and gas, and financial sectors.

Vietnam stocks also rose as much as 0.35% to their highest in nine years. Malaysian shares were marginally higher.