Market inches up on upbeat China factory indicator

The local stock barometer closed higher on thin trade on the first working day of 2017, as upbeat China factory gauge brought good tidings to regional markets.

The Philippine Stock Exchange index gained 20.67 points or 0.30 percent to 6,861.31 on the first trading day of the year.

For the third straight session, foreign investors were in a net buying position on upbeat prospects for the new year. Net foreign inflows to the local stock market on Tuesday stood at P319 million.

Value turnover for the day was meager at P2.68 billion as many investors were still on a holiday break after the New Year turnover.

“The year ahead could once again be challenging. However, I believe that challenges offer us opportunities. Challenges hone our skills, develop our character, and allow us to appreciate the things we have,” PSE chair Jose Pardo said in his welcome remarks during the bell ringing program Tuesday.

All counters ended higher except for the services counter which slipped slightly.

There were 89 advancers, edging out 79 decliners while 42 stocks were unchanged.

Jollibee and JG Summit led the PSEi higher, both rising by more than 3 percent while GT Capital was up by 2.36 percent.

Globe Telecom, PLDT, SM Prime, URC, AP, Metrobank and Security Bank also contributed to the day’s gains.

On the other hand, MPI fell by 2.4 percent while Ayala Corp., BDO, SM Investments and Megaworld also slipped.

Elsewhere in the region, investors took heart from the rise in the official China manufacturing purchasing managers’ index (PMI) to 51.9 in December, the fastest improvement since 2013.

A score above 50 indicates expansion while a reading below indicates factory contraction.