Local shares climb on positive investor sentiment

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LOCAL SHARES snapped their five-day decline on Tuesday, as analysts noted the positive outlook of the Philippine index in the long term.

The 30-member Philippine Stock Exchange index (PSEi)returned to positive territory yesterday as it closed 0.74% or 60.55 points higher at 8,145.

The broader all-shares index likewise increased 0.57% or 27.41 points to end at 4,786.06.

“(The market is picking up) because more investors from abroad are deciding to go into Philippine stocks for the long term,” First Metro Securities Brokerage Corp. Market Education Consultant Alexander N. Gilles said in a mobile phone message.

He added that they are looking at the progress in infrastructure projects as well as developments in the tax reform bill to affect trading in the following weeks.

Regina Capital Development Corp. Managing Director Luis A. Limlingan said the index continued to track developments abroad.

“The Philippines regained some buying momentum while the Dow closed at a record Monday as investors cheered the weekend passage of the Senate version of a sweeping overhaul of the US tax code,” he said in a mobile phone message.

The Dow Jones Industrial Average climbed 0.24% or 58.46 points to close at 24,290.05 on Monday on the back of developments on the US tax reform bill. The US Senate recently approved the tax bill and will now proceed to reconcile its version with that of the House of Representatives.

The proposed US tax bill will change personal income tax brackets, and cut corporate taxes to 20% from 35%, among others.

“However, the S&P 500 and the Nasdaq finished lower as large capitalization technology names took a beating,” Mr. Limlingan added, as the S&P 500 closed 0.11% lower while the Nasdaq Composite Index dropped 1.05% or 72.22 points.

Back home, all sectoral indices posted increases, with the property sector logging the largest climb at 1.62% or 61.33 points to 3,847.26. Financials followed at 2,074.38, 0.68% or 14.18 points higher than the previous trading day.

The holding firms counter went up 0.62% or 51.59 points to 8,273.15; mining and oil added 0.45% or 51.66 points to 11,357.86; services inched up 0.29% or 4.63 points to 1,581.54; and industrial rose 0.06% or 7.33 points to 10,653.

The market saw a total of 672.03 million issues change hands valued at P7.81 billion, slightly lower than the P7.55 billion recorded on Monday.

Advancers trumped decliners, 102 to 97, while 49 issues were unchanged.

The market continued to log a net foreign selling position of P127.03 million, albeit lower than the P474.2 million recorded on Monday.

“By yearend, (index) should be in a range from 7,800 to 8,400. Average (is) 8,200,” First Metro Securities’ Mr. Gilles said. — Arra B. Francia