MANILA— Most local stocks surged for a fourth straight session on Wednesday as a string of favorable US economic news boosted global risk-taking.
The main-share Philippine Stock Exchange index gained by 65.55 points or about 1.5 percent to finish at 4,487.77.
This developed as Wall Street started its first day of trading in an upbeat mood on Tuesday, lifting the Dow Jones Industrial Average by 179.82 points or 1.4 percent to finish at a five-month high of 12,397.38.
Investors took heart from reports that US factory output had risen in December at the fastest pace in six months.
This was complemented by news that US construction spending jumped in November.
Also, January is usually a strong season for equities as investors take a fresh position after their yearend window-dressing activities.
Most equity markets across the region likewise traded strongly yesterday.
“It’s a positive surprise. This is the January effect. It’s essentially the weight of money. It’s a liquidity-driven type of rally,” said Erico Claudio, strategist at Pentacapital Investments.
In its daily report, AB Capital Securities said the US manufacturing index was one major indicator that provided a positive surprise.
“This was after China also released a better-than-expected manufacturing data of their own. The US ISM was at 53.9, a gain from 52.7 in November and better than the consensus expectation of 53. Any number above 50 indicates expansion and anything under represents contraction. This shows that the US manufacturing sector is still expanding moderately in December and at a somewhat faster rate than in November,” the firm said.
All counters were up but services benefited the most as its sub-index jumped by 2.2 percent. Value turnover improved to P5.83 billion from P4.87 billion. Inquirer