Stock price index nears 7,300 on positive sentiment in Wall Street

The local stock barometer rallied closer to the 7,300 mark on Monday, tracking upbeat investor sentiment in Wall Street and regional markets.

The main-share Philippine Stock Exchange index (PSEi) gained 67.7 points or 0.94 percent to close at 7,294.40.

“Philippine markets got off to a green start as the (US) Dow (Jones Industrial Index) reclaimed 20,000 and the Nasdaq closed at a fresh record high after President Trump signed an executive order to scale back the 2010 Dodd-Frank financial-overhaul law,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.

A massive piece of financial reform legislation passed by the Obama administration in 2010 as a response to the financial crisis of 2008, the Dodd-Frank Act spelled out measures meant to curb various risks in the US financial system.

“A mixed [US] January jobs report—one that delivered stronger than expected payroll additions but also tepid wage growth—also provided a tailwind for stocks,” Limlingan said, adding that this raised the possibility that the US Federal Reserve might not tighten policy in March.

Meanwhile, he noted that the surprise hike in interest rate by China’s central bank had little effect on overall markets as the aim to soak up liquidity would help bring some sense into the recent sharp run-up in highly leveraged sectors.

At the local market, all counters ended higher, led by the property counter (up 1.88 percent), except for the mining/oil counter, which is hounded by a string of mining closure and suspension orders issued by the Department of Environment and Natural Resources.

Value turnover for the day amounted to P8.22 billion. There were 97 advancers against 91 decliners while 48 stocks were unchanged.

Megaworld led the PSEi higher with its 4.95-percent gain, followed by San Miguel, SM Prime and Universal Robina.