LOCAL shares snapped their three-day losing streak in early trading on Monday as sentiment was lifted by the gains on Wall Street on Friday after February US jobs data came in better than expected.
At the noon break, the bellwether Philippine Stock Exchange index (PSEi) was up 97.33 points or 1.16 percent at 8,469.84. The wider All Shares index was up 44.63 points or 0.88 percent at 5,097.42.
All counters ended morning trading higher led by holding firms, up 1.31 percent.
“Basically, the market … has been going through a medium-term consolidation. We are going through a consolidation between the areas of 8,450-8,500 to 8,600-8,650 [points], but all of this was brought [about]by the US market,” Summit Securities, Inc. President Liu said in a phone interview.
Liu said that once the Dow Jones industrial average broke the 26,000 points resistance, it was likely that local shares would follow suit.
“But as of now, [the US market]is also going through a sideways [movement],” he said.
The tech-heavy NASDAQ finished 1.8 percent higher at 7,560.81 on Friday while the Dow Jones rose 440.53 points to close at 25,335.74.
With investors having largely factored in key rate increases this year, the upcoming Monetary Board meeting of Bangko Sentral ng Pilipinas on March 22, during which the central bank is expected to announce if they will increase key rates or not, did not affect trading sentiment. ANGELICA BALLESTEROS