The stock market gained Monday after another record close on Wall Street overnight, with selective issues rising on expectations of better first-half profits.
The Philippine Stock Exchange Index rose 23.78 points, or 0.3 percent, to 8,049.13 on a value turnover of P10.2 billion. The index stayed in sight of the record close of 8,127.48 posted in April 10, 2015.
Gainers beat losers, 115 to 85, with 45 issues unchanged.
Cemex Holdings Philippines Inc. advanced 4.4 percent to P12.46, while Universal Robina Corp., the biggest snack food maker, added 1.3 percent to P199.60.
Bank of the Philippine Islands, the third-largest lender, climbed 1.7 percent to P97.70, while Vista Land & Lifescapes Inc. of the family of former senator Manuel Villar surged 4.6 percent to P6.39.
Manila Electric Co., the biggest retailer of electricity, increased 1.3 percent to P317. Meralco approved total cash dividends of P15.2 billion comprising of P4.608 and a special dividend of P8.872 a share to stockholders of record as of Aug. 24, 2016 and payable on Sept. 19, 2016.
The rest of Asian equity traders, meanwhile, moved cautiously Monday as Wall Street’s gains were offset by wariness ahead of central bank meetings in Japan and the United States this week.
The bank policymakers’ gatherings are the first since last month’s shock vote in Britain to leave the European Union, which led to promises around the world to provide support to financial markets.
The pledges have fanned a surge across global markets, with the Dow and S&P 500 in New York both enjoying a series of records, while strong US data has also boosted the dollar as talk of another interest rate hike resurfaces.
Tokyo’s Nikkei ended marginally lower, giving up morning gains as a rally in the dollar against the yen lost steam. The greenback bought 106.26 yen from 106.19 yen. Traders are also awaiting the start of Japan’s earnings season.
Among other markets Hong Kong ended down 0.1 percent, while Shanghai closed 0.1 percent higher, having drifted in and out of positive territory throughout the day.
Seoul added 0.1 percent and Sydney put on 0.6 percent, while Singapore eased 0.4 percent and Taipei dipped 0.2 percent.
struggling economy, although hoped-for helicopter money—the direct injection of cash into the economy such as people’s bank accounts—is not expected to feature.
Before that, the Federal Reserve will have its meeting, at which it is tipped to hold rates, but traders will be hoping for some forward guidance on its policy plans.
“Investors are placing a lot of faith in central banks and fiscal authorities to increase stimulus and improve the growth calculus,” Matthew Sherwood, head of investment strategy at Perpetual Ltd. in Sydney, said in an e-mail to clients.
“Equity valuations are stretched but unlike bonds they are not yet at historic extremes and given that it has historically taken three rate hikes to burst equity asset bubbles, share prices should remain elevated for a while yet.” With AFP