Stocks set new record high past 8300

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The stock market powered past 8,300 on Tuesday to hit a new all-time high, mirroring gains on Wall Street and ignoring the worst mass shooting in US history.

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The bellwether Philippine Stock Exchange index (PSEi) rose by 0.69 percent or 56.65 points to settle at 8,312.93, the highest since it hit 8,286.86 on September 21, 2017.

The broader All Shares grew by 0.51 percent or 24.64 points to close at 4,892.

“Philippine stocks broke new ground once more and US stock benchmarks traded in record territory Monday afternoon as equities resumed a steady run-up that could set the tone for the final three months of 2017,” brokerage firm Regina Capital Development Corp. said.

“The moves for stocks occurred amid an upbeat tone on Wall Street despite a mass shooting event in Las Vegas that is being described as the worst in US history,” it added.

The Dow Jones Industrial Average climbed 0.68 percent overnight, the S&P 500 firmed up 0.39 percent, and the tech-heavy Nasdaq grew 0.32 percent.

Nearly all sectoral indices were in the green, with the exception being mining and oil that fell by 0.06 percent.
Over 1.4 billion issues valued at P7.2 billion were traded.

Winners led losers, 105 to 94, while 55 issues were unchanged.

Elsewhere in the region, Tokyo closed at a two-year high with the benchmark Nikkei 225 index up 1.05 percent
to finish at 20,614.07, its best close since August 2015, with a weaker yen boosting Japanese exporters.

Analysts also said the markets were unaffected by a mass shooting from a Las Vegas hotel that left at least 59 dead and hundreds injured.

“The global markets trudge on, searching for opportunities, realizing these tragedies are becoming all too commonplace,” said Stephen Innes, head of Asia-Pacific trading at OANDA.

“And as cynical as that may seem, that is the reality we’ve come to accept,” he added.

US manufacturing activity rose to its highest level in 13 years last month, making investors bullish about the third-quarter US earnings season which begins in around 10 days

Companies in the S&P 500 are projected to report a five percent year-over-year gain in operating earnings-per-share (EPS), according to CFRA Research.

President Donald Trump’s market-friendly tax reform proposals, including a plan to cut the corporate tax rate from 35 percent to 20 percent, have also buoyed investors.

Hong Kong closed 2.25 percent higher after a long weekend and Sydney edged down 0.4 percent.

The weaker yen lifted Japanese automakers and other exporters despite an announcement from Nissan late Monday it was recalling some 1.2 million cars in Japan that had failed to meet domestic rules on vehicle inspections.

The gains came after the Bank of Japan’s Tankan survey showed business confidence in the world’s third-largest economy had hit its highest level in a decade.

‘Risk aversion waning’

“Global growth, folks, global growth. That’s the economic story of the night as the raft of manufacturing PMIs released in the past 24 hours tell the story of a continuation of this trend toward synchronization and strength,” said Greg McKenna, chief market strategist at AxiTrader.

“Gold continues to fall as the global economy grows… [and]as risk aversion wanes,” he added.

Europe’s stock markets were little changed at the start of trading Tuesday, with London’s benchmark FTSE 100 index down fractionally.

The Paris CAC 40 gained 0.2 percent while Frankfurt’s DAX 30 was shut because of a public holiday in Germany.

The euro struggled to recover against the dollar following a police crackdown on the banned Catalonia independence referendum.

Catalonia’s leader declared victory in the referendum to secede from Spain, prompting a warning from Madrid that it would do “everything within the law” to prevent the region from declaring independence.

The referendum was marred by shocking scenes of police violence, with security forces moving in on polling stations across the region to stop people from voting, in some cases using batons and firing rubber bullets to disperse crowds.

WITH A REPORT FROM AFP

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