Strong blue chips, export data boost index

MANILA, Philippines - The momentum from blue chips and upbeat export data pushed the main index to a fresh four-month high yesterday.

The Philippine Stock Exchange index gained 0.65 percent or 42.35 points to 6,529.58, its best since closing at 6,543.39 on Nov. 4. The broader all shares index picked up 0.47 percent or 18.50 points to 3,915.22.

“The market was buoyed by previous laggards, while winners maintained elevated levels,” Nisha S. Alicer, research strategist at DA Market Securities, said in a text message.

Technically, sentiment indicates a bit more upside toward the 6,700 resistance, she said.

On the economic front, the Philippine Statistics Authority reported that Philippine merchandise exports jumped 9.3 percent to $4.38 billion in January from $4.01 billion a year ago.

It allowed the benchmark index to buck the trend in Wall Street, which fell due to the surprisingly weak export data in China last month. The Dow Jones industrial average eased 0.21 percent or 34.04 points to 16,418.68, while the broader Standard & Poor’s 500 index shed 0.05 percent or 0.87 points to 1,877.17.

Asian markets posted gains ahead of the end of Bank of Japan’s policy meeting. Japan’s Nikkei 225 rose 0.69 percent or 103.97 points to 15,224.11.

At home, all counters were in the green, paced by industrial companies that added 1.17 percent or 115.08 points to 9,950.13.

Advancers outplayed decliners, 87 to 78, while 41 stocks did not change. Turnover value improved to P8.19 billion from P6.19 billion on Monday.

“For short term investors, we recommend profit taking on stocks that are overbought,” Alicer said, adding that the benchmark index’s immediate support is at 6,482.