PSE in­dex climbs fur­ther as US stocks hit record

Business World - - THE STOCK MARKET - Vic­tor V. Saulon with Reuters

THE MAIN in­dex main­tained its rise on Wed­nes­day af­ter the trad­ing break the pre­vi­ous day as US stocks hit record highs.

The Philip­pine Stock Ex­change in­dex (PSEi) closed higher by 4.57 points or 0.05% at 8,053.88

Mean­while, the broader all­shares in­dex fin­ished lower by 2.26 points or 0.04% at 4,776.35.

“Lo­cal shares con­tin­ued on their as­cent al­beit min­i­mal as US stocks rose to all-time highs on Tues­day as fi­nan­cials re­ceived a boost from ris­ing yields,” said Luis A. Lim­lin­gan, busi­ness de­vel­op­ment head at Regina Cap­i­tal De­vel­op­ment Corp.

The ma­jor Wall Street in­dexes hit record clos­ing highs on Tues­day, with fi­nan­cial stocks lead­ing the charge. The Dow Jones In­dus­trial Av­er­age rose 61.49 points or 0.28% to 22,118.86; the S& P 500 gained 8.37 points or 0.34% to 2,496.48; and the Nas­daq Com­pos­ite added 22.02 points or 0.34% to 6,454.28.

Mr. Lim­lin­gan said US mar­kets rose af­ter fears over Hur­ri­cane Irma and geopo­lit­i­cal ten­sions in Korea eased.

“Wall Street also di­gested com­ments from Trea­sury Sec­re­tary Steven Mnuchin on tax re­form. Euro­pean stocks rose for a fifth day with banks in the driver’s seat re­flect­ing a rise in govern­ment bond yields,” he said.

Mr. Mnuchin said he was “hope­ful” that tax re­form would be ac­com­plished by year’s end, adding the ad­min­is­tra­tion is think­ing about back­dat­ing re­form to Jan. 1.

Back­dat­ing “is still some­thing we are con­sid­er­ing and it would be a big boon for the econ­omy,” he said at the De­liv­er­ing Al­pha con­fer­ence pre­sented by CNBC and In­sti­tu­tional In­vestor.

Mr. Lim­lin­gan added, how­ever, that “price ac­tion was tem­pered by sell­ing pres­sure” in tech stocks.

Some an­a­lysts said the PSEi might once again break the 8,100 level af­ter re­cent de­vel­op­ments here and abroad.

“Looks like we will retest 8,100 again soon,” Miko S. Sayo, a trader at Ang­ping & As­so­ci­ates Se­cu­ri­ties, Inc., ear­lier said. “Let’s see if we can fi­nally break above it.”

Four of the six sec­tor indices man­aged to post gains, led by the min­ing and oil counter, which ad­vanced by 172.42 points or 1.25% to fin­ish at 13,944.68. Fi­nan­cial stocks inched up by 11.81 points or 0.6% to 1,978.31; in­dus­tri­als gained 22.91 points or 0.2% to 11,275.49; and prop­erty moved higher by 2.26 points or 0.05% to 3,808.29. On the other hand, ser­vices lost 20.64 points or 1.18% at 1,721.73, while hold­ing firms gave up 15.85 points or 0.2% at 7,918.7.

Ad­vanc­ing stocks out­paced de­clin­ers at 108 to 96, while 45 is­sued fin­ished un­changed. Value turnover stood at P12.88 bil­lion or more than twice the pre­vi­ous trad­ing day’s P6.1 bil­lion. Vol­ume of trade also im­proved to 1.36 bil­lion from 899.17 mil­lion pre­vi­ously.

For­eign­ers changed course and bought more stocks than they sold, re­sult­ing in a net buy­ing of P3.34 bil­lion. Net sell­ing on Mon­day reached P232 mil­lion.

BDO Uni­bank, Inc. was the most ac­tive stock yes­ter­day, fol­lowed by Ay­ala Land, Inc. and SM In­vest­ments Corp. •

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