PHILIPPINE stocks extended their rally on Thursday after US consumer confidence rose to an eight-month high in December just before the holidays.
The bellwether Philippine Stock Exchange index (PSEi) climbed by 56.14 points or 0.86% to close at 6,576.94 on Thursday, while the broader all-shares index rose by 22.43 points or 0.65% to 3,442.26.
“Seasonal and passive investors who received extra cash during this season are placing their bets on the market for their long-term investment objective, pushing up the index,” said Unicapital Securities, Inc. Equity Research Analyst Neil Andrew L. Maderaje in a Viber message.
He said the PSEi logged its three-day rally on Thursday “as investors set stock positions” before Christmas Day and New Year’s Eve.
“Philippine shares jumped ahead a couple of days before the Christmas break as better-than-feared earnings and strong consumer confidence data pushed, which jumped to the highest level since April, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
In December, the US consumer confidence index rose to 108.3, the highest reading since April and higher than the 101.4 recorded last month.
Meanwhile, US consumers’ 12-month inflation expectation fell to 6.7%, lower than 7.1% last month and the lowest since September last year.
Majority of the sectoral indices closed higher on Thursday except mining and oil, which went down by 39.85 points or 0.37% to close at 10,599.76, and financials, which lost 4.91 points or 0.29% to 1,654.74.
Meanwhile, holding firms added 100.39 points or 1.56% to close at 6,505.52; property increased by 21.62 points or 0.75% to 2,898.95; services went up by 10.85 points or 0.68% to 1,600.53; and industrials rose by 51.03 points or 0.55% to close at 9,321.85.
Value turnover went up to PHP 6.47 billion on Thursday with 3.77 billion shares changing hands from the PHP 6 billion with 4.36 billion issues traded on Wednesday.
Advancers outnumbered decliners, 97 versus 77, while 53 names closed unchanged.
Net foreign selling climbed to PHP 166.84 million on Thursday from PHP 158.45 million seen the previous trading day.
According to Unicapital Securities’ Mr. Maderaje, positive sentiment on the market would likely continue as the new year comes in.
“On the other hand, these short-term rallies would likely be challenged by anticipated economic headwinds,” he said, citing an elevated interest rate environment, the peak of inflation data, and a slowdown of global economic activity in 2023.
He placed the PSEi’s short-term support level at 6,400 and its resistance level at 6,800. — Justine Irish D. Tabile
This article originally appeared on bworldonline.com