Philippine shares rebounded on Tuesday as investors took cues from US markets’ performance and the release of October external payments data.
The Philippine Stock Exchange index climbed by 25.20 points or 0.4% to finish at 6,208.83 on Tuesday, while the broader all shares index increased by 9.28 points or 0.28% to close at 3,314.60.
“The index returned above the 6,200 level as a relatively benign market environment, an overnight rally in US shares, and a favorable auction of 20-year US Treasuries spurred bargain hunting in local equities,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.
Wall Street’s three major stock averages closed higher on Monday, with Nasdaq’s 1% rally leading the charge, as heavyweight Microsoft hit a record high after it hired prominent artificial intelligence executives, Reuters reported.
The Dow Jones Industrial Average rose 203.76 points or 0.58% to 35,151.04; the S&P 500 gained 33.36 points or 0.74% at 4,547.38; and the Nasdaq Composite added 159.05 points or 1.13% at 14,284.53.
“The local bourse gained… following the US markets overnight amid the signs of a slowdown in the US inflation. The positive sentiment was further fueled by the recorded surplus in the Philippines’ balance of payments (BoP) in October, indicating potential support for the peso, which has been gaining strength recently against the US dollar,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar added in a Viber message.
The Philippines’ country’s BoP surplus widened to USD 1.5 billion in October from USD 711 million in the same month a year ago, data released by the Bangko Sentral ng Pilipinas (BSP) on Monday showed.
For the first 10 months, the BoP position stood at a USD 3.2-billion surplus, a turnaround from the USD 7.1-billion deficit in the same period a year ago.
The BSP expects the country’s BoP position to end the year at a USD 127-million deficit.
Sectoral indices were mixed on Tuesday. Financials went up by 17.54 points or 1.01% to 1,751.42; industrials climbed by 83.05 points or 0.95% to 8,760.74; and services increased by 14.01 points or 0.93% to 1,507.42.
Meanwhile, property fell 18.64 points or 0.7% to 2,640.56; mining and oil dropped 4.57 points or 0.04% to 9,446.33; and holding firms declined by 1.91 points or 0.03% to 5,939.74.
Value turnover rose to PHP 3.91 billion on Tuesday with 422.56 million issues changing hands, from the PHP 3.73 billion with 690.86 million issued recorded on Monday.
Declines edged out advancers, 86 versus 80, while 43 issues closed unchanged.
Net foreign buying stood at PHP 120.35 million on Tuesday, a turnaround from the PHP 105.9 million in net selling recorded on Monday.
“The 6,200 to 6,250 area is a strong resistance zone, so we need to see more buying at these levels to build a case for a fresh rally,” Mr. Colet said. — R.M.D. Ochave with Reuters
This article originally appeared on bworldonline.com