SHARES jumped on Wednesday on selective buying of large-cap stocks after investors returned to the market following the Eid’l Adha holiday.
The bellwether Philippine Stock Exchange index (PSEi)climbed 1.75% or 131.73 points to close at 7,632.26, recovering after the holiday break on Tuesday.
The broader all-shares index likewise rose 1.17% or 53.48 points to 4,623.61.
“As expected, participants were quick to make up for the break wedged between the trading days, and picked up stocks beaten in previous sessions,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile message.
Shares in Jollibee Foods Corp. jumped 4.76% to P286 each; Universal Robina Corp. surged 4.83% to P139 apiece; SM Investments Corp. rose 2.02% to P936.50 per share; while Manila Electric Co. also gained 3.66% to P363 each.
The PSEi tracked the climb in international markets as Wall Street also ended Tuesday with gains. The Dow Jones Industrial Average added 0.25% or 63.60 points to 25,822.29. The S&P 500 index inched up 0.21% or 5.91 points to 2,862.96, while the Nasdaq Composite index ended 0.49% or 38.17 points higher to 7,859.17.
“The PSEi traded strongly throughout the day, buoyed by the positivity from US markets over our short holiday, and was even bought up at the close,” Papa Securities Corp. trader Gabriel Jose F. Perez said in an e-mail.
Meanwhile, Asian shares ex-Japan were trading 0.25% higher after the benchmark S&P 500 touched a record high on Tuesday, buoyed by strong earnings reports in the consumer sector and relative calm in the trade dispute between the United States and China.
Back home, all sectoral indices ended in positive territory. Industrials led gainers, soaring 2.63% or 286.41 points to 11,169.26, followed by property which firmed up 1.88% or 70.88 points to 3,833.02. Holding firms went up 1.76% or 129.30 points to 7,441.82; mining and oil rallied 1.32% or 128.88 points to 9,862.38; services logged 0.81% or 12.28 points to 1,527.80; while financials added 0.14% or 2.64 points to 1,788.09.
Some 1.65 billion issues valued at P6.48 billion switched hands, higher than the previous session’s P5.40-billion turnover.
Foreign investors reversed their selling position as they logged net purchases worth P62.13 million yesterday from Monday’s net outflow of P669.91 million.
Advancing and declining stocks were tied at 103 each yesterday, while 36 names ended unchanged.
“However, [Thursday] might be another story altogether… Cues overseas are mixed, as US market will most likely be euphoric from S&P’s historical bull run, while developments with the Manafort & Cohen cases still downside risk for US bourses,” Regina Capital’s Mr. Limlingan said.
“Rest assured, Wall St.’s closing [on Wednesday] will point the direction for PSEi’s opening sentiment,” he added. — Arra B. Francia with Reuters