Local Equities Mirror Wall Street

The local equities climbed mirroring Wall Street’s rally on strong earnings and economic data. The PSEi gained 54.31 points, or +0.78% to close at 7,057.53. Most indices ended in green led by the industrial (+1.41%) and property (+1.23%) sectors.

Market breadth was positive with 89 advances outnumbering 78 declines, while 44 issues remained unchanged. Total value turnover reached Php5.99 billion. Foreign investors were net sellers at Php153.56 million.

US equities extended Friday’s rally, with investors overlooking dismal earnings results from tech giant IBM. The Dow Jones Industrial Average index edged up 19.26 points to 16,399.67 and the S&P500 index jumped 17.26 points to 1,904.02.

Most Asian markets, meanwhile, gained with the Japanese Nikkei, Indian Sensex, Australian ASX200 and Chinese Shanghai Composite gaining 578.72 (+3.98%, DoD), 321.32 (+1.23%, DoD), 47.70 (+0.90%, DoD) and 15.54 (+0.66%, DoD) basis points, respectively. Reasons for the broad-based rally include a positive US economic data release, progressive regulatory measures in India and china with regard to energy and financial markets and sectoral strength in Australian banking and mining.

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