The easing of US job numbers that caused a 140-point overnight rise in Dow Jones lifted sentiments in most markets and lead Philippine share prices to a significant increase.
“Investors took guidance overseas, particularly on Dow Jones’ steep ascent last night [Monday night]. Most investors were on buying mode, given declines in previous weeks,” Freya Natividad of brokerage firm Papa Securities Inc. said.
Jun Calaycay, Accord Capital Equities Corp. analyst, explained that US stocks rallied as job market numbers eased concerns over US Federal Reserve tapering, adding that bets on a US attack on Syria took a backseat after President Barrack Obama failed to muster sufficient support from the Ground of 20 members.
“From outright bearish to somewhat bullish—that accurately describes the subtle shift of sentiments we have pointed to in the last few weeks. It was as if the markets were waiting for one impetus to emerge from the doldrums it was experiencing. The impetus came in the form of a 140-points rise in the Dow Monday night,” he further said.
On Tuesday, the Philippine Stock Exchange index (PSEi) jumped 1.54 percent, or 92.68 points to 6,089.72, while the wider all-shares barometer increased by 1.28 percent, or 47.04 points to 3,720.53.
“Philippine shares jumped over 100 points early in the session but met interim resistance at the 6,110-mark. It took some time before the line was broken, moving the resistance line to the 6,130 to 6,150 band. A modicum of selling toward the close pulled gains to just 92.68 points at the bell,” Calaycay said.
Except for mining and oil, all the sub-indices gained significantly by more than a percent, with holding firms surging by 1.96 percent, or 103.63 points to 5,394.85, followed by the property counter, which rose by 1.57 percent, or 35.14 points to 2,270.60.
Financials went up 1.33 percent, or 19.24 points to 1,470.24, while services gained 1.23 percent, or 23.56 points to 1,936.12. Industrial jumped 1.20 percent, or 111.90 points to 9,415.82.
Mining and oil, however, went down a bit by 0.62 percent, or by 83.17 points to end at 13,248.22.
Value turnover stood at an improved P8.95 billion, with advancers edging decliners, 79 to 54.
“All sectors traced a similar path albeit breadth was not strikingly wide. Advancers led decliners roughly two-to-one. Value turnover was more than the recent sessions hitting the near-term, but still below the long-term averages,” Calaycay said.
Some of the most actively traded stocks were SM Prime Holdings Inc., Universal Robina Corp., Alliance Global Group Inc., BDO Unibank Inc. and SM Investments Corp.