Stocks soar to 8,900 level on positive sentiment

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STOCKS soared on Tuesday, pushing the main index to another all-time high as it tracked the gains of international markets.

Stocks soar to 8,900 level on positive sentimentThe bellwether Philippine Stock Exchange index (PSEi) jumped 2.04% or 178.60 points to finish at 8,923.72, bouncing back from its decline in the previous trading day.

Yesterday’s close is the PSEi’s fourth all-time high for 2018, just five trading days into the new year.

The broader all-shares index also climbed 1.43% or 72.86 points to 5,138.63.

“After a mild sell-off yesterday (Monday), Philippine markets retained the upward trajectory with a new record level once again,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said on Tuesday.

“I think the local stock market is just following the global equities’ record close following higher global growth,” IB Gimenez Securities, Inc. Head of Research Joylin F. Telagen said in a text message.

Wall Street logged record highs in previous days before taking a pause on Monday as it gave up 0.05% or 12.87 points to 25,283. The S&P 500 index and Nasdaq Composite index continued their climb, closing 0.17% or 4.56 points higher to 2,747.71 and 0.29% or 20.83 points up to 7,157.39, respectively.

Most Southeast Asian stock markets also rose on Tuesday, tracking broader Asian peers, with Singapore extending gains to touch a 32-month high.

Japanese markets, which were closed on Monday for a national holiday, were up, with the Nikkei share average hitting a 26-year high.

Singapore added 0.50%, its highest since April 2015, on broad-based gains.

Thai shares rose as much as 0.30%, with materials and financials pushing the index higher, before paring gains.

Indonesia fell marginally, snapping three straight sessions of gains. An index of the country’s 45 most liquid stocks fell 0.30%.

Vietnam climbed as much as 1%, its highest since November 2007, while Malaysia fell 0.10%.

IB Gimenez’ Ms. Telagen added that the government’s tax reform and infrastructure programs continued to boost investor sentiment.

All sectoral indices moved to positive territory, with property leading the charge with a 2.4% or 96.97-point increase to 4,137.94; financials followed with a gain of 2.24% or 50.32 points to 2,292.52; holding firms climbed 1.72% or 154.98 points to 9,130.42; industrials added 1.17% or 135.14 points to 11,664.14; mining and oil gained 1.01% or 116.55 points; while services increased 0.82% or 13.18 points to 1,613.91.

Value turnover was recorded at P8.36 billion on Tuesday, higher than Monday’s P7.07 billion, which 709.37 million issues changing hands.

The market saw 118 names advance versus 93 that declined, while 47 remained unchanged.

Foreign investors continued to place their funds in the country, as net foreign inflows climbed to P1.42 billion from P1.2 billion logged on Monday. — Arra B. Francia with Reuters