PSEi at fresh high on earnings, bargain hunting
THE Philippine Stock Exchange index (PSEi) finished at a fresh record high on Monday, bouncing back on selected positive earnings results of companies abroad and bargain hunting by investors.
The index closed at 8,523.07, showing an increase of 146.94 points or 1.75%. This marks the 12th record high of the PSEi for the year. The last recorded peak was 8,516.02, which was the close last Thursday, Nov. 2.
The all-shares index closed at 4,968.60, which is higher by 69.70 points or 1.42%.
Luis A. Limlingan, managing director at Regina Capital Development Corp., said strong results of Apple, Inc. and gains by food and beverage companies in European markets offset a weak US October jobs report and a slump in telecom firms in Europe.
“Philippine stocks bounced back from the slump after US stocks closed at records on Friday, with major indexes extending their lengthy upward moves on the back of strong results at Apple, which offset a mixed set of economic data, including a weaker October jobs report. European stocks advanced, widening their second consecutive weekly gain, as food and beverage companies rebounded after two weeks of losses, offsetting a slump in telecom firms,” Mr. Limlingan said in a text message.
Last Friday, the Labor Department reported that US nonfarm payrolls rose a seasonally adjusted 261,000 in October, below the expectations of 310,000.
Meanwhile, Apple registered profits of $10.7 billion , up 19%.
Jervis S. de Celis, equities trader at Timson Securities, Inc. said the index went up as investors went on bargain hunting after the down last Friday, and also due to the anticipation of third-quarter gross domestic product (GDP) data to be released next week.
“I also think that market sentiment today was buoyed by San Miguel’s announcement to consolidate its consumer businesses. Foreign investors remained net buyer in the local market after the US nonfarm payroll reported 261,000 jobs were made in October missing the 310,000 jobs expected for the month,” Mr. De Celis said in a text message on Monday.
All sector counters finished in the green. Holding firms went up 209.79 points or 2.45% to end at 8,765.47; industrials rose 200.50 points or 1.85% to 11,026.84; services climbed 22.08 points or 1.31% to 1,699.70; financials went up 19.56 points or 0.96% to close at 2,055.72; property gained 24.99 points or 0.62% to close at 4,028.47; and mining and oil added 27.16 points or 0.2% to finish at 13,308.11.
Value turnover dropped to P7.29 billion on Monday from the previous session’s P9.79 billion, with 1 billion shares changing hands. Net foreign buying continued but thinned to P267.22 million yesterday from Friday’s P620.43 million.
Most Southeast Asian markets also edged higher on Monday, in tandem with Wall Street which gained on Friday on healthy corporate earnings and after data showed job growth in the world’s largest economy accelerated in October. — PPCM with Reuters
