Stocks advanced for a second day, sending the benchmark index above the 8,000-point mark, after a better-than-expected US jobs report boosted the outlook for global economic growth.
The Philippine Stock Exchange index, the 30-company benchmark, gained 61 points, or 0.8 percent, to close at 8,055.06 Tuesday. The bellwether was up 15.9 percent since the start of the year.
The heavier index, representing all shares, also rose 20 points, or 0.4 percent, to settle at 4,778.56, on a value turnover of P9.5 billion. Losers outnumbered gainers, 99 to 93, while 42 issues were unchanged.
Fourteen of the 20 most active stocks ended in the green, led by Cosco Capital Inc., the holding company of tycoon Lucio Co which climbed 3.4 percent to P9.10 and Max’s Group Inc. which rose 3.3 percent to P34.
SM Investments Corp., the holding company of tycoon Henry Sy, gained 2.5 percent to P697, while property developer Ayala Land Inc. added 2.1 percent to P41.05.
Meanwhile, a gauge of developing-nation equities headed for its highest close since August 2015 with Thailand and South Korea leading gains in Asia. Thailand’s stocks and currency advanced after voters approved a military-backed constitution, a first step toward restoring democracy in the southeast Asian nation. Korean stocks rallied after S&P Global Ratings raised the country’s credit ranking.
“The payroll data signal recovery in spending power and the overall U.S. economy, and that’s driving positive sentiment,” said John Teja, a director at PT Ciptadana Securities in Jakarta. “The market is still driven by data for now. As long as we have enough positive data to maintain the momentum, the upside trend could stay. But I think we are still prone for corrections.”
Thailand’s benchmark stock index gained 1.1 percent, set for the highest close since April 2015, after voters approved a new military-backed constitution in the first ballot since a coup two years ago. The baht strengthened 0.4 percent. Bloomberg, AFP
The passing of the charter means the junta, which has boosted public spending in an attempt to spur economic growth, is more likely to stick to its current timeline of holding elections by late 2017.
Korean stocks rallied after S&P raised the country’s credit rating by one level to AA, citing steady economic growth and adding it expects geopolitical risks to be contained. The benchmark Kospi index gained 0.4 percent.
“Korea has exhibited stronger economic performance in recent years than most other high-income economies” S&P said in a statement. “The Korean economy remains well-diversified and is not dependent on a particular industry or export market.”
The Hang Seng China Enterprises index of mainland stocks listed in Hong Kong rose 1.1 percent while the Shanghai Composite Index added 0.7 percent. The Jakarta Composite index climbed 0.4 percent to a 15-month high after foreign investors boosted their holdings of Indonesian stocks by $583 million last week.