MANILA, Philippines - The main stock index surged to a fresh all-time high yesterday, its 10th so far this year, as investors positioned ahead of the corporate earnings season and the trickle of positive news abroad.
The bellwether Philippine Stock Exchange index (PSEi) gained 0.4 percent or 24.78 points to vault to a record 6,192.42, eclipsing the previous mark of 6,171.70 set on Jan. 21.
The broader All Shares index likewise advanced, adding 0.43 percent or 16.89 points to 3,902.18.
Market breadth was positive as advancers outpaced decliners, 101 to 61, while prices of 50 stocks did not change. Value of shares traded rose to P9.06 billion from P8.89 billion on Friday.
“Earnings season is already in the corner. There are also trickle of news during the weekend,†Astro C. del Castillo, managing director of First Grade Finance Inc., said in a phone interview.
For instance, the meeting between Chinese and Japanese leaders amid a territorial dispute and optimism from the World Economic Forum in Davos gave investors reasons to pick up stocks, Del Castillo said.
He said for the rest of the week, the main index is poised to breach the uncharted 6,200 territory given strong turnover.
The rally will be confirmed by reports of strong earnings growth, Del Castillo added.
Around Asia, stock markets also posted slight gains yesterday after strong US earnings pushed Wall St. indexes to multi-year highs, though Japan’s Nikkei dipped amid profit-taking.
The US is due to report durable goods and pending home sales for December later in the day, but the numbers would have to sharply disappoint to dampen enthusiasm for stocks, analysts said.
“The heavy slate of US data releases this week will keep markets busy but overall we see little to dent the positive tone to risk assets over coming sessions,†Mitul Kotecha of Credit Agricole CIB in Hong Kong wrote in a market commentary.
The Nikkei in Tokyo opened higher but then slipped 0.8 percent to 10,840.11 as investors cashed in shares following strong gains. Hong Kong’s Hang Seng rose 0.5 percent to 23,691.42. Benchmarks in mainland China, Singapore and Taiwan also rose.
Australian markets were closed for a public holiday.
On Wall St., the Standard and Poor’s 500 index closed Friday above 1,500 for the first time in more than five years after good earnings reports from Starbucks and Procter & Gamble, the world’s largest consumer products maker. – Neil Jerome Morales, with AP