Stock market bounces back to 7,000 level

The local stock barometer rallied back to the 7,000 level Wednesday as a string of upbeat US economic data boosted risk-taking across regional markets.

The Philippine Stock Exchange index gained 169.64 points or 2.47 percent to close at 7,030.95.

For the fourth straight trading session, foreign investors were net buyers in the market, although at a modest amount of P184 million.

“The Philippine market tracked the opening of the US markets, which rallied late in the session. Earlier, the major stock averages had notably pared morning gains following a sharp reversal in oil and a rally in the dollar to fresh 14-year highs in the wake of strong manufacturing and construction data,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.

He noted that the US factory activity had accelerated to a two-year high in December while the Institute for Supply Management’s manufacturing purchasing managers’ index improved to 54.7, the highest level since December 2014. The new orders index spiked to 60.2 from 53 while the production index rallied to 60.3 from 56.

At the same time, Limlingan noted that Markit’s US Manufacturing Purchasing Managers’ Index had edged up to 54.3 in December. “That was the strongest improvement in business conditions in almost two years. The improvement was largely driven by stronger rates of employment growth and inventory building which more than offset slightly weaker increases in output and new orders.”

Meanwhile, US construction spending reached its highest level in 10.5 years in November.

As such, Limlingan noted that stocks in Asia finally climbed after data fueled confidence in the US economy and as equity traders in Tokyo returned from holidays with the yen nursing a four-day slump.

At the local market, all counters edged higher led by the property sub-index which rose by 3.6 percent while the financial and services counters both surged by over 1 percent.

Value turnover for the day amounted to P7.58 billion.  There were 144 advancers that overshadowed 43 decliners while 41 stocks were unchanged.

Investors picked up shares of PLDT, which rose by 6.79 percent while SM Prime, Ayala Land and Ayala Corp. were all up by over 4 percent.

BDO Unibank, Meralco and GT Capital rose by over 2 percent while Metrobank, BPI, Robinsons Land, JG Summit and DMCI Holdings all advanced by over 1 percent.

Globe Telecom also contributed modest gains.

In 2016, the PSEi declined by 1.6 percent, slipping for the second straight year.  This was after testing the 8,000 mark after the national elections.