The Philippine stock market made a surprise surge on Wednesday, breaking into the 7,300-point territory as it responded to positive China manufacturing data.
Reports said the HSBC flash manufacturing Purchasing Managers’ Index (PMI) for China rose to 50.5 in September from the 50.2 recorded in August, beating expectations and staying above the all-important 50-point level, below which would indicate contraction rather than expansion.
The positive China data boosted the majority of the Asian markets, including the Philippine Stock Exchange index (PSEi), despite declines in US and European markets.
The PSEi advanced 1.15 percent or 83.67 points to close at 7,355.29, after setting an intraday high at 7,372.39. For the 10th time, the benchmark index set a new high for this year, and the highest close since September 8 at 7,314.94. The wider All Shares index gained 0.85 percent or 36.49 points to finish at 4,340.62.
Miguel Agarao of Wealth Securities Inc. said that the market “can possibly break the all-time high this week.”
Agarao said that the market movement was a pleasant surprise, saying that the market was mostly forecast to go sideways for the day due to lack of market moving news in the past few days, but was boosted by the China data despite lower US and European markets.
“Asian markets including the Philippines are taking leads from China, which resulted in an unexpected buying,” Agarao said.
Agarao, as well as AB Capital Equities Corp’s Joyce Anne Ramos, both said that the stocks that pushed the market up include Ayala Land Inc. (ALI), Universal Robina Corp. (URC), SM Prime Holdings Inc., Alliance Global Group Inc. and Megaworld Corp.
Both Agarao and Ramos said that the market will go ahead and retest the 7,400 level, even hinting that it might soon break the all-time high set in May last year at 7,392.2.
“Whether it will break or not, right now, the market is just 48 points away from the all-time high. So it’s possible,” Agarao said.
Agarao also said that the market is still seen to trend upward between now and the end of the year to as high as 7,544 points. He said the market, being in the 7,300 level, will now trade within the range of 7,200 to 7,400.
Only services dipped among the six sector subindices, decreasing 0.10 percent or 2.29 points to 2,215.53 while the rest were gainers, led by a 3.60 percent jump in the property index, closing 100.25 points higher at 2,888.23. Industrials advanced 1.12 percent or 127.38 points to 11,500.14; Holding Firms rose 0.92 percent or 58.32 points to 6,410.58; Mining and Oil climbed 0.34 percent or 60.87 points to 17,763.51; while financials finished ahead 0.24 percent or 4.04 points at 1,717.91.
The 10 most active stocks were all advancers. Aside from Megaworld, ALI, URC, SM Prime and Alliance Global, the major stock gainers were Philippine Long Distance Telephone Company, Ayala Corp., BDO Unibank Inc., Metropolitan Bank and Trust Company, and Energy Development Corp.
Value turnover was high at P11.37 billion, while total volume was at 2.3 billion shares. Advancers were ahead of decliners, 110 to 74, while 48 shares were unchanged.
On Tuesday, Manila’s PSEi dipped 0.11 percent or 8.24 points to 7,271.62, while the broader All Shares index slipped as well, down 0.20 percent or 8.72 points to close at 4,304.13.
Overnight, the Dow Jones dropped 116.81 points, while the S&P 500 slipped 11.52 points, and the Nasdaq erased 19 points.