LOCAL EQUITIES jumped on Tuesday, benefiting from the return of investors after a long weekend alongside gains recorded across international markets.
The bellwether Philippine Stock Exchange index (PSEi) climbed 1% or 78.14 points to 7,844.61 Tuesday, August 28, while the broader all-shares index likewise gained 0.64% or 30.31 points to 4,759.13.
“As largely anticipated, the local bourse cruised through Tuesday’s session entirely in green, driven by the return of both local and foreign participants to the market following the long break,” Regina Capital Development Corp. Investment Analyst Rens V. Cruz II said in a mobile message.
The main index reflected the positive finishes seen abroad, with the Dow Jones Industrial Average firming up 1.01% or 259.29 points to 26,049.64. The S&P 500 index edged higher by 0.77% or 22.05 points to 2,896.74, while the Nasdaq Composite index had an uptick of 0.91% or 71.92 points to 8,017.90.
Southeast Asian stock markets also edged higher on Tuesday as concerns over global trade war eased after the United States and Mexico made a deal to overhaul the North American Free Trade Agreement (NAFTA).
“Moreover, the optimism that spread across markets Tuesday, August 28, from the preliminary agreement between US and Mexico on NAFTA certainly set the tone for the local benchmark’s opening, while the return of domestic funds and investors buoyed trading throughout,” Mr. Cruz added.
Papa Securities Corp. trader Gabriel Jose F. Perez also attributed the PSEi’s increase to optimism in international markets.
“Recall that US markets surged [on Monday], with the S&P 500 and the Nasdaq even making new highs, on the back of developing news on a trade deal between the US and Mexico,” Mr. Perez said in an e-mail.
Back home, most sectoral indices stayed in positive territory, led by the mining and oil sector which rose 1.84% or 181.59 points to 10,018.40. Financials followed with a 1.67% increase or 30.11 points to 1,827.17, while holding firms went up 0.9% or 68.71 points to 7,677.39.
Property also increased 0.76% or 29.91 points to 3,935.01, while industrials added 0.59% or 67.53 points to 11,333.34.
The services counter was the lone sub-index that ended in the red, albeit with a minimal loss of 0.01% or 0.19 point to 1,546.15.
Some 1.55 billion issues valued at P7.65 billion switched hands, up slightly from Friday’s P7.22 billion. Advancers outpaced decliners, 112 to 94, while 38 issues remained flat.
Foreign investors returned to the market, with net purchases reaching P474.40 million versus a net outflow worth P398.89 million in the previous session.
“Moving forward, we anticipate developments from US markets [on Tuesday] which might have a hand again in how our index fares [on Wednesday]. Look out as well for foreign flows as these have recently dictated the PSEi’s movement,” Mr. Perez said. — Arra B. Francia with Reuters