LOCAL EQUITIES climbed on Monday to track the positive finishes of international markets last Friday.

The 30-member Philippine Stock Exchange index (PSEi) saw a 0.48% uptick or 43.10 points to 8,857.72 on Monday.

The broader all-shares index likewise added 0.54% or 27.84 points to 5,126.59.

“Local stocks took cue from bullish US markets over the weekend and bullish regional markets, expectations of higher OFW (overseas Filipino workers) remittances for the last two months of 2017, as well as optimism ahead of local fourth-quarter earnings reports,” PCCI Securities Brokers Corp. Research Head Joseph James F. Lago said in an e-mail.

International markets ended mostly higher last Friday, with the Dow Jones Industrial Average jumping 0.89% or 228.46 points to 25,803.19. The S&P 500 index was up 0.67% or 18.68 points to 2,786.24, while the Nasdaq Composite index added 0.68% or 49.29 points to 7,261.06.

AB Capital Securities, Inc. Senior Equity Analyst Lexter L. Azurin attributed the market’s performance to continued positive sentiment on the Philippine economy on the back of the recently enacted tax reform program.

“These continue to be favorable to listed companies. What’s also adding to the positive sentiment is government planning to pass the second round of packages, reduction in corporate income tax,” Mr. Azurin said in a phone interview yesterday.

Four sectoral counters moved to positive territory, while two ended on a negative note. The mining and oil sub-index led gainers with an increase of 1.3% or 152.74 points to 11,905.55, followed by industrials, which rose 1.04% or 119.66 points to 11,591.15. Holding firms gained 1.02% or 92.10 points to 9,087.58, while property added 0.49% or 19.96 points to 4,040.63.

Meanwhile, the financial sector gave up 0.87% or 20.28 points to 2,305.37 and services dropped 0.05% or 0.96 point to 1,618.62.

A total of 735.82 million issues valued at P5.58 billion changed hands, dropping from Friday’s P7.95-billion value turnover.

Decliners trumped advancers, 109 to 99, while 52 issues were flat.

Mr. Azurin also noted that foreign funds continue to push the market up, with net foreign buying recorded at P419.91 million on Monday, higher than the P141.94 million recorded the previous trading day.

Megaworld Corp. was the most actively traded stock on Monday, albeit losing 4.31% to P4.88 each. Jollibee Foods Corp. meanwhile saw a 3.45% increase to P263.80 each, while BDO Unibank, Inc. shed 1.15% to P163 apiece.

For today, PCCI Securities’ Mr. Lago said investors will look at “other economic reports that will further point to global economic growth for 2018.”

Other Southeast Asian stock markets also climbed on Monday as broader Asia drew confidence from record-setting gains on Wall Street, with Thailand scaling a fresh all-time peak. — Arra B. Francia with Reuters

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