MANILA, Philippines - Local stocks soared to a new record high yesterday, tracking the upbeat sentiment in global markets, amid investor optimism on the US economy and the easing debt crisis in the eurozone.
The benchmark 30-company Philippine Stock Exchange index (PSEi) surged 106.44 points or 2.26 percent to finish at 4,822.08, also boosted by positive earnings outlook on local firms,encouraging US, Chinese and German manufacturing data, and easing concerns over the eurozone.
“Global markets are rallying on positive economic indicators. We have recently met with foreign funds and we’ve seen keen investor interest in the Philippines. We hope this market trend continues,” PSE president and chief executive officer Hans B. Sicat said in a statement.
Investors gobbled up shares of selected large-capitalized companies led by SM Investments Corp. and telecom giant Philippine Long Distance Telephone Co.
SMIC, the investment holding firm of the family of retail tycoon Henry Sy, gained 8.2 percent to close at P677 while PLDT shares rose 2.56 percent to P2,798 each.
Buyers likewise snapped up shares of Ayala Corp., which saw its price rising 6.9 percent to end at P387.
A total of 8.34 billion shares valued at P18.16 billion changed hands yesterday.
Wall St. and European stocks rallied earlier after a report showed that US manufacturing activity grew at its strongest pace in seven months in January.
The Dow Jones Industrial Average closed up 83.55 points or 0.7 percent overnight on the back of better-than-expected manufacturing data. Similar positive economic indicators were also reflected by China and Germany.
Locally, unemployment rate in 2011 improved to seven percent from 7.4 percent year-on-year.
“After a short bout of pessimism, investors appear to have regained the same positive spirit that drove the index to set and reset record highs last month, to yet rewrite index history,” said Jun Calaycay, an analyst at Accord Capital Equities Inc.
“Improving macro-numbers from major economies both in the East and West combined to re-ignite optimism on the forward outlook,” he noted.
Calaycay said despite problems facing the eurozone, Philippine banks have remained strong with loan portfolios continuing to grow.
“The domestic economy is stable and government’s targets are reasonable and more in line with market expectations,” he said.
Calaycay pegged the market’s immediate support at 4,770-4790.
In other Asian markets,Tokyo’s Nikkei 225 rose 0.7 percent to 8,875.21 while Hong Kong’s Hang Seng gained 1.5 percent to 20,629.68 and Seoul’s Kospi added 1.1 percent to 1,980.90.
Global equities are advancing “on hopes of the global economy gaining a solid footing and the banking sector continued to rally on the belief that Europe will avoid a catastrophe,” IG Markets in Melbourne said in a report.
European stock indexes also rose Wednesday. France’s CAC-40 gained 2.1 percent while Britain’s FTSE 100 rose 1.9 percent and Germany’s DAX jumped 2.4 percent.
China’s benchmark Shanghai Composite Index climbed 0.4 percent to 2,276.22 yesterday amid signs manufacturing improved in January for a second straight month.
Shares in Singapore, Australia, Taiwan, New Zealand, Thailand and India all gained ground.
“After stepping into a soft patch in the fourth quarter, Asian economic growth is gradually picking up,” said Frederic Neumann, co-head of Asian economics at HSBC in Hong Kong. “This rebound is led by the region’s giants: China, India, and Japan.”
Early yesterday, the Tokyo Stock Exchange suspended trading in 241 securities, including Sony Corp. and Hitachi Ltd., due to a glitch in its electronic trading system. Trading in the suspended securities resumed near midday. – with AP