PSEi returns to 8,000 level on US jobs report
Credit to Author: Tyrone Jasper C. Piad| Date: Mon, 04 Nov 2019 16:15:30 +0000
The local bourse tracked the positive movement in Wall Street on Monday, returning to the 8,000 level again.
The bellwether Philippine Stock Exchange index (PSEi) surged by 1.03 percent or 82.53 points to finish at 8,059.65 while the wider All Shares climbed by 0.92 percent or 44.25 points to close at 4,831.70.
“Philippine shares rose sharply as investor sentiment got a lift from much stronger-than-expected United States jobs data and optimism over the trade negotiation between China and US,” Regina Capital Development head of sales Luis Limlingan said.
It was reported that US jobs increased by 128,000 in October, higher than the forecast of 85,000. Unemployment rate, however, was slightly up to 3.6 percent from 3.5 percent a month ago.
Meanwhile, the Chinese Ministry of Commerce said recently that both US and China achieved “consensus in principle” for their trade negotiations.
Limlingan added that corporate earnings report by SM Prime Holdings Inc. and Security Bank prompted bargain hunting.
SM Prime Holdings saw its consolidated nine-month net income surge by 18 percent to P27.6 billion from P23.44 billion a year ago on the back of robust mall and residential segments.
Security Bank’s consolidated profits climbed by 18 percent to P7.70 billion in the first nine months from the year-earlier P6.54 billion on higher revenues.
Philstocks Financial Inc., meanwhile, said investors are still anticipating the inflation and gross domestic product (GDP) growth figures.
Consumer price growth eased to 0.9 percent in September from decreasing heavily-weighted food and non-alcoholic beverages index, bringing the nine-month average to 2.8 percent.
GDP in the first half, meanwhile, grew to 5.5 percent, which is below the government target of 6 to 7 percent this year.
The Philippine Statistics Authority will be releasing inflation and GDP reports today and November 7, respectively.
Wall street was up. Dow Jones, S&P 500 and Nasdaq added 1.11 percent, 0.97 percent and 1.13 percent, respectively.
In Asia, Shanghai inched up by 0.58 percent, Hong Kong spiked by 1.43 percent, Seoul improved by 1.43 percent, Singapore added 0.01 percent, Thailand gained 1.30 percent, and Vietnam increased by 0.72 percent.
Tokyo was down 0.33 percent while Jakarta fell 0.21 percent.
In Manila, all sectors ended in the green, with services leading at 1.66 percent.
Over 1.15 million issues, amounting to P6.56 billion, changed hands.
Advancers outnumbered decliners, 120-62, while 41 issues were unchanged.