Stocks up on positive US data

THE LOCAL stock barometer was modestly higher Wednesday as regional markets welcomed firmer US retail sales data ahead of a two-day US Federal Reserve Board meeting to decide whether or not to raise interest rates for the first time in a decade.

The Philippine Stock Exchange index (PSEi) added 4.91 points or 0.07 percent to close at 7,093.92 in mixed trade, rising for the fourth straight session.

The local bourse tracked the upswing across the region, which took its cue from the overnight rally in Wall Street. The Dow Jones industrial index racked up 228.89 points or 1.4 percent to close at 16,599.85 Tuesday. Ahead of the two-day Fed meeting, it was reported that US retail sales rose for a second straight month, growing 0.2 percent in August after a 0.7-percent gain in July.

“Overall, risk assets did well overnight. But, transaction volumes were below average in most markets ahead of the US Fed meeting,” Citi said in a research note.

“Perhaps US retail sales report calmed some investor concerns that heightened global uncertainty and concerns over a China slowdown may weigh on consumer sentiment in the US,” it said.

At the local market, the index was supported by the gains of the holding firms and services counters. However, the financial, industrial, mining/oil and property counters declined.

Value turnover amounted to P7.07 billion. There were 101 advancers that overwhelmed 63 decliners while 39 stocks were unchanged.

Local investors supported the market as there was P306 million in net foreign selling for the day. Doris Dumlao-Abadilla