Stocks rose for a third day, pushing the benchmark index to a new record high Tuesday, amid optimism on the global economy and on expectations of strong third-quarter performance of listed companies.
The Philippine Stock Exchange index, the 30-company benchmark, climbed 49 points, or 0.6 percent, to close at 8,497.74 Tuesday. It hit an intra-day high of 8,586.73 in the afternoon, a new peak, before profit taking took place.
The heavier index, representing all shares, also advanced 18 points, or 0.4 percent, to settle at 4,956.13, on a value turnover of P11.8 billion. Losers outnumbered gainers, 121 to 88, while 42 issues were unchanged.
Thirteen of the 20 most active stocks ended in the green, led by aviation company MacroAsia Corp. which climbed 4.8 percent to P18. SM Investments Corp., the holding company of the Sy family, rose 2.9 percent to P980, while Security Bank Corp. went up 2.7 percent to P266.80.
Meanwhile, other Asian equities edged up Tuesday as traders took a breather after recent strong gains, with more records on Wall Street unable to spur strong buying, but the dollar built on the previous day’s rally.
While optimism remains over the world economy and corporate earnings—helping push global markets to all-time or multi-month highs—investors moved carefully as they await the next catalyst.
New York’s three main indexes chalked up yet more fresh peaks on Monday thanks to a rally in banks and hopes that Donald Trump can still push through his economic agenda despite a series of setbacks for his legislative program.
Hong Kong was 0.1 percent up in the afternoon after three days of gains, but Shanghai slipped 0.2 percent with eyes turning to Thursday’s release of Chinese economic growth data.
The readings will come a day after the country’s leadership starts its twice-a-decade meeting of the Communist Party. President Xi Jinping is set to be handed a second term, while changes to several key party leadership positions are expected.
Tokyo rose 0.4 percent, an 11th straight gain, to put the Nikkei at a new 21-year high.
Sydney was up 0.7 percent on a bounce in commodity prices, Seoul added 0.2 percent and Singapore lifted 0.3 percent. Manila piled on 1.6 percent but Taipei, Bangkok and Jakarta were all lower.
In early European trade London was flat, Paris rose 0.12 percent and Frankfurt dipped 0.1 percent.
On currency markets the dollar extended Monday’s gains against the euro following comments from Federal Reserve boss Janet Yellen hinting at a further interest rate rise this year, while dealers fret over Spain’s Catalonia crisis.
Madrid warned the region’s separatist leader on Monday that he has only three days left to “return to legality” after he refused to say whether he would follow through on a threat to declare independence from Spain, one of the eurozone’s biggest economies.
The greenback was also pushing up against the pound as Britain struggles to make headway in talks with the European Union on how to break away from the bloc.
The US unit has also been given support from talk that a known fiscal hawk is being considered as a front-runner to take over from Yellen when her term ends early next year.
Trump is said to have been impressed with Stanford University economist John Taylor at an interview last week, fueling speculation he is in prime position.
Oil prices were slightly down after rallying on news that Iraqi forces had swept into Kirkuk province, seizing the governor’s office, key military sites and an oilfield following a controversial Kurdish independence referendum. With AFP, Bloomberg