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By Revin Mikhael D. Ochave, Reporter
SHARES improved on Wednesday as investors reacted to the latest report from the Manufacturing Purchasing Managers Index (PMI).
The 30-member Philippine Stock Exchange Index (PSEi) rose 71.06 points or 1.01% to close at 7,080.62 on Wednesday, while the broader index of all stocks rose 22.42 points or 0.53% to end at 4,222.09.
Philstocks Financial, Inc. associate researcher Claire T. Alviar said in a mobile phone message that the local market improved on the Philippine manufacturing PMI data for November.
“The improvement in the Philippine manufacturing PMI boosted sentiment, although it remains in contraction territory. An expansion is expected in the last month of the year ”, said Alviar.
Manufacturing activity in the Philippines slowly approached stabilization in November, after production increased for the first time in five months and the rate of job losses slowed, a survey by IHS Markit showed.
The IHS Markit Philippines manufacturing PMI improved to 49.9 last month from 48.5 in October for the second consecutive month of deterioration, approaching the neutral mark of 50 that separates it from expansion.
Ms Alviar added that the stock market improved following the positive performance of the US markets.
The Dow Jones Industrial Average rose 0.63% to close at 29,823.92 points, while the S&P 500 gained 1.13% to 3,662.45. The Nasdaq Composite was up 1.28% to 12,355.11.
For Luis A. Limlingan, director of sales at Regina Capital Development Corp., the market continued its rally as investor sentiment improved after a statement by a group of US lawmakers on a $ 908 billion stimulus plan.
“The local stock market finished with a gain despite falling into the red territory this morning. The closed buying market pushed the index up even though foreigners were net sellers during the day, ”Timson Securities, Inc., director of online trading and trader Darren Blaine T. Pangan said in a mobile phone message.
Most of the PSE sector indices closed with gains on Wednesday. Holding companies rose 135.45 points or 1.87% to 7,343.53; industrials improved 79.67 points or 0.87% to 9,205.41; the property rose 30.02 points or 0.84% to 3,596.28; and finance companies rose 2.73 points or 0.19% to 1,418.9.
Meanwhile, services fell 12.13 points or 0.78% to 1,536.10, while mining and oil fell 1.76 points or 0.02% to 8,592.08.
Value turnover on Wednesday stood at P8.80 billion with 3.90 billion issues changing hands, down from P10.89 billion the previous session with 4.04 billion issues.
The decliners outscored the advanced, 116 versus 108, while 39 names finished unchanged.
Net foreign sales were down to P282.35 million from P1.33 billion in the previous session.
“Immediate resistance can be placed at 7,200 while the closest support is at 6,750,” Pangan said.
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