By Arra B. Francia, Reporter

SHARES FIRMED UP on Tuesday along with international markets on the back of strong manufacturing data from the United States and China.

The 30-member Philippine Stock Exchange index (PSEi) climbed 0.49% or 38.90 points to close at 7,879.21. The broader all-shares index likewise rose 0.43% or 20.73 points to 4,844.86.

“Our market is benefiting from upbeat data that came out from China and the US yesterday. Manufacturing data from the world’s two largest economies were stronger than expected, tempering fears that we are entering a global slowdown in growth,” AAA Southeast Equities, Inc. President William Matthew M. Cabangon said via text on Tuesday.

China’s Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) expanded at the strongest pace in eight months in March, rising to 50.8 from 49.9 in February, above the neutral 50-mark dividing expansion from contraction on a monthly basis and the highest level seen since July 2018. Meanwhile, the US Institute for Supply Management said its index of national factory activity rose to 55.3 from 54.2 in February, which had marked the lowest level since November 2016.

Diversified Securities, Inc. Equities Trader Aniceto K. Pangan also attributed the market’s performance to China’s manufacturing data, in addition to optimism from foreign investors.

“Mainly, market was up today on bargain hunting on continued net foreign buying as well as growth optimism from the release of China’s PMI for March beating estimates indicative of a turnaround,” Mr. Pangan said in a separate message on Tuesday.

Foreign investors posted a net buying figure of P503.89 million yesterday, significantly higher than the previous session’s P29.07 million worth of net purchases.

Wall Street indices also welcomed the strong manufacturing data. The Dow Jones Industrial Average jumped 1.27% or 329.74 points to 26,258.42. The S&P 500 index climbed 1.16% or 32.79 points to 2,867.19, while the Nasdaq Composite index rose 1.29% or 99.59 points to 7,828.91.

Back home, all sectoral indices ended in positive territory, led by services which inched up 0.87% or 13.78 points to 1,594.22. Financials jumped 0.77% or 13.35 points to 1,743.06; mining and oil rallied 0.66% or 50.78 points to 7,717.38; holding firms advanced 0.35% or 27.5 points to 7,719.49, while industrials added 0.21% or 25.49 points to 11,754.70.

Turnover slimmed to P4.79 billion after some 2.20 billion issues switched hands, against Monday’s P5.53 billion.

Despite the main index’s positive performance, decliners outpaced advancers, 103 to 91, while 46 names were unchanged.

“AAA maintains a constructive view on local equities in the short to medium term. We advise investors to buy on dips,” AAA’s Mr. Cabangon said. — with Reuters

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