PSEi closes higher as US markets reach highest levels

Despite the lack of market-moving news, the Philippine Stock Exchange index ended higher on Friday as stock markets in the US closed at their highest levels of the year. Optimism in the US markets helped push Philippine shares inch higher although "fund managers are already in the mood to pocket gains before the year ends," analyst Martin Santos of First Metro Securities Brokerage Inc. The PSEi added 17.93 points or 0.44 percent to close at 4,057.33, according to the PSE's online market information as of 12:10 p.m. In New York Thursday, a small drop in unemployment claims helped push stocks higher. The Dow Jones Industrial Average and the Standard & Poor's 500 index closed at their highest levels of the year. The Dow rose 41.78 or 0.4 percent to 11,499.25 while the broader Standard & Poor's 500 index went up 7.64 or 0.6 percent to 1,242.87. Although the domestic market has turned to be "medium-term bearish," Santos said it is still up by "32 percent despite the correction" earlier this week. Santos pointed out that it is just prudent for investors to take profits before the holidays officially kick in. The thinning value turnover is also causing a lot more volatility in domestic share prices, he said. More than 830 million shares valued at P3.9 billion changed hands. Advancers outpaced decliners 85 to 43 while 47 issues remained unchanged. Meanwhile, AB Capital Securities Inc. said that the long-term outlook for the PSEi remains bullish as the bigger uptrend channel is still trending up. Initial support is at 4,000 while resistance is at 4,100, AB Capital noted. — Jesse Edep/OMG, GMANews.TV