PSEi hits new closing record

MANILA, Philippines - The Philippine Stock Exchange index (PSEi) closed at a new all-time high on Tuesday.

On Tuesday, the PSEi closed at 5,157.28, up 39.82 points or 0.80 percent. The previous closing record high was 5,145.89, which was set last March 16.

The PSEi also reached a fresh intraday high at 5,186.52, beating the previous record intraday level at 5,146.17 last March 19.

"While developments abroad continue to be a significant factor in dictating market movements, investor confidence in our local market remains strong which has enabled it to buck the downward trend in the region these past few days. This four-day rally shows that the market continues to withstand external shocks as it is supported by the Philippines' growth story," PSE president and CEO Hans B. Sicat said, in a statement.

As of April 17, the PSEi has grown by 18% or 785.32 points, year-to-date.

Stocks breach 4,200-mark

MANILA, Philippines - Stocks advanced for the second session in a row Thursday, breaching the 4,200-mark, on rosy economic outlook.

The key Philippine Stock Exchange index rose 1.1% or 48.46 points to a record high of 4,245.05.

The broader all-share index climbed 1.4% or 35.91 points to 2,676.

Except for the mining and oil sector, all subindices finished in positive territory.

But market breadth was negative as decliners beat advancers, 72 to 57. There were 51 issues unchanged.

Value turnover came in at P5 billion.

Traders said the International Monetary Fund's upward revision for its growth forecast for the Philippines boosted investor sentiment.

Expectations of robust second-half corporate earnings also spurred buying.

Philippine Long Distance Telephone Co. was the most actively traded stock by value, adding 1.2% to P2,760. This brings the stock's total gains to 4.1% in the last 3 trading sessions.

Second most active was SM Investments Corp., which picked up 1.1% to P535. SM said it would issue $400 million of new 2017 bonds, including $213.7 million in an exchange for shorter-dated bonds to lengthen its maturity profile.

Third most active was Metropolitan Bank and Trust Co. It rose 2.2% to P75 on net foreign buying.

Wall Street rallies on recovery bets as 2010 starts

NEW YORK – Stocks climbed broadly on Monday after a report showed the manufacturing sector expanded for a fifth straight month, lifting confidence in the global economy as investors eye fourth quarter earnings.

The rally, which marked the first trading day of 2010, drove both the Dow and the S&P 500 to their highest closes in 15 months, while the Nasdaq ended at a 16-month high.

The Institute for Supply Management's manufacturing index rose to its highest level since April 2006 in December. The report followed similarly strong readings from the commodity-hungry manufacturing sectors in China and India overnight.

That and a weaker US dollar helped push natural resource stocks higher as commodity prices rose.

"The ISM number was very, very good, and we think it points to continuing strengthening and overall, bodes relatively well in the near-term for the market," said Karl Mills, president of Jurika, Mills and Keifer, an investment advisory firm in Oakland, California.

The Dow Jones industrial average gained 155.91 points, or 1.50%, to end at 10,583.96. The Standard & Poor's 500 Index rose 17.89 points, or 1.60%, to 1,132.99. The Nasdaq Composite Index jumped 39.27 points, or 1.73%, to 2,308.42.

Star turn for oil and materials

Energy and materials were the top sectors in the S&P 500 as those stocks got a lift from the prospect of stronger manufacturing, which would increase demand for fuel, electricity, metals and some other commodities.

Oil companies' shares got a further boost after Deutsche Bank upgraded the US refining sector and raised the ratings on several refiners, including Valero Energy Corp and Sunoco Inc.

Valero jumped 6.8% to $17.89, and Sunoco advanced 6% to $27.67. The PHLX Oil Service index climbed 3.9%.

The Institute for Supply Management said its index of national factory activity rose to 55.9 in December, above forecasts for a reading of 54.3. A reading above 50 indicates expansion.

Both of China's PMI manufacturing surveys rose in December, with the official reading hitting its highest level in 20 months. That was echoed in India, where the manufacturing index hit a 7-month peak last month.

Analysts said the reports gave welcome support as investors head into fourth-quarter earnings season later in January. US stocks rose last month after the US unemployment rate unexpectedly fell in November.

US crude oil futures rose 2.2%, or $2.15, to settle at $81.51 per barrel after hitting a 2-month high earlier in the session. The US dollar fell 0.5% against a basket of currencies. Copper hit a 16-month high.

Currency traders were cautious about the greenback before Friday's non-farm payrolls report, which investors are looking to for confirmation of further stabilization in the labor market.

High hopes for chipmakers

Robert W. Baird upgraded chipmaker Intel Corp to "outperform" on expectations for a rebound in corporate spending on personal computers. That helped drive the Philadelphia semiconductor index up 1.7%.

Intel, a Dow component and a bellwether on Nasdaq, climbed 2.4% to $20.88.

Volume, although modest, appeared to be the best since December 22nd, with most market participants back at work on Monday after a long holiday break.

About 1.01 billion shares changed hands on the New York Stock Exchange, below last year's daily average of 2.18 billion.

On the Nasdaq, about 1.95 billion shares traded.

Advancing stocks outnumbered declining ones on the NYSE by a ratio of 4 to 1, while on the Nasdaq, nearly 11 stocks rose for every three that fell.

Asian shares bring curtain down on year of recovery

HONG KONG - Asia's markets rebounded during 2009 from losses incurred in the global financial crisis, but analysts warned of further volatility in the 12 months ahead.

More than a year after world economies went into freefall, the Asia-Pacific region has recovered strongly, largely due to the rapid deployment of massive government stimulus measures.

The year saw investor confidence return across the region. Hong Kong's Hang Seng Index ended 52% higher after being stripped by nearly the same amount in 2008.

In China the Shanghai Composite Index surged 80% while Seoul's KOSPI added nearly 50%. Tokyo's Nikkei-225 ended a tumultuous year 20% higher.

However, analysts warned of further volatility in 2010, as the United States and China look to end massive stimulus packages.

"If the economic recovery in the US takes hold, the government will likely exit its stimulus package," ICBC International strategist Ernie Hon told Dow Jones Newswires.

"Additionally, China is already facing a potential property market bubble."

The Shanghai Composite Index enjoyed a huge bull run in 2009 after shedding nearly two thirds of its value in 2008 as the effects of the global financial crisis took hold.

Beijing in 2008 unveiled a four-trillion-yuan (586-billion-dollar) stimulus package along with big tax breaks to boost domestic spending amid the global slump.

But analysts see the Chinese market consolidating in 2010 as the government looks to rein in record lending and surging property prices.

"In 2010, the Chinese stock market may continue to consolidate in a see-saw pattern. Various factors may affect the market including the possible exit from the stimulus package" said Cai Junyi, stock analyst at Shanghai Securities.

Japan saw a volatile 12 months as the country exited recession but saw unemployment hit a record high as prices continued to fall along with wages and a stronger yen battered exporters.

On Wednesday the Nikkei-225 closed down 0.86% at 10,546.44, still up 20% over the year.

A major concern for policymakers in 2010 is tackling falling consumer prices and averting another deflationary spiral, analysts said.

"Even if the performances of individual companies are impressive (in 2010), the overall stock market wouldn't get a boost without confidence in Japan," said Hiroaki Kuramochi, chief equity marketing officer at Tokai Tokyo Securities.

Investors will continue to look to the United States amid signs the world's biggest economy is recovering from deep recession.

"Recent US economic data have been encouraging," said Macquarie Private Wealth Associate Director Marcus Droga in Sydney. "The US market obviously believes the economy is more likely to get better".

The Dow Jones Industrial Average was up 20% ahead of Thursday's final trading session of 2009.

Elsewhere Sydney's S&P/ASX 200 index added more than 30% in a year that saw Australia hailed as "the wonder from Down Under", as the only major Western economy to avoid recession and the first to ease monetary stimulus amid surging resources exports to China.

However, AMP Capital Investors chief economist Shane Oliver said he expected a weaker 2010 as the after effects of the banking crisis in the US continued.

"That's going to no doubt throw up a few losses here and there," he said.

In India, Mumbai's Sensex index added a massive 80% as the government's economic reforms and coordinated policy actions restored confidence with foreign investors returning.

Singapore's Straits Times Index was 65% higher, as the government declared the end to a severe recession that had emerged in the third quarter of 2008.

The region's other markets also surged, with Sri Lanka 128% higher, Bangkok and Manila more than 60% up on the year, Kuala Lumpur up 45% and Wellington 18% higher.