Shares rally as markets await results of US vote

By Denise A. Valdez, Senior Reporter

PHILIPPINE SHARES moved in step with the acceleration of global equities as investors kept a close watch on the United States (US) election results on Wednesday.

The bellwether Philippine Stock Exchange index (PSEi) jumped 128.49 points or 2.02% to close the session at 6,464.05. The broader all shares index likewise grew 59.14 points or 1.56% to end at 3,848.61.

“The local market surged 2.03% following the overnight rally of the US markets with DJIA (Dow Jones Industrial Average) jumping more than 500 points as investors await the election results in the US,” Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a text message.

On Tuesday’s election day, Wall Street rode a wave that brought the DJIA, S&P 500 and Nasdaq Composite indices up 2.06%, 1.78% and 1.85%, respectively.

As the US election results would have a direct impact on the global economy as well, other markets across the globe were likewise closely watching the results of the vote.

“Philippine shares jumped on Wednesday as investors hoped a clear winner would emerge from the US presidential election and a delayed, or contested, result would be avoided,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

Ballots were still being counted at the close of the local market, as this year’s election accommodated more absentee and by-mail votes.

“So far, Asian markets as well are in the green, also waiting for the US election results. Investors are closely monitoring it since whoever wins, it would have an impact on the global economy,” Philstocks’ Ms. Alviar said.

Apart from the US election, a local catalyst for Wednesday’s trading was the release of September trade data, which showed the trade gap was reduced on the back of export recovery.

“[G]rowth in export and contraction slowdown of import have also spurred positive sentiment… It may imply that domestic demand is slowly picking up again,” she said.

All sectoral indices ended Wednesday’s trading higher: mining and oil by 205.26 points or 2.7% to 7,790.96; holding firms by 154.93 points or 2.34% to 6,761.74; property by 64.06 points or 2.12% to 3,083.42; financials by 21.46 points or 1.72% to 1,263.08; industrial by 146.45 points or 1.71% to 8,704.15; and services by 12.23 points or 0.84% to 1,454.97.

Some 2.34 billion issues valued at P7.25 billion switched hands on Wednesday, against the previous day’s 4.2 billion issues worth P6.6 billion.

Advancers outnumbered decliners, 135 against 73, while 46 names ended unchanged.

Net foreign selling was trimmed to P431.49 million on Wednesday from P1.14 billion in the previous session.

“The market stays above 6,200 given the lingering optimism and participation of investors,” Ms. Alviar said.