The stock market extended its push above 9,000 points Monday as investors tracked last week’s record-breaking close on Wall Street.
The Philippine Stock Exchange Index added 17.42 points, or 0.2 percent, to a record 9,058.62 on a value turnover of P8.9 billion, after climbing to an intraday high of 9,078.37. Losers, however, beat gainers, 116 to 95, with 55 issues unchanged.
Telecommunications companies led gainers. PLDT Inc., the biggest telecom company, surged 6.5 percent to P1,601, while rival Globe Telecom Inc. advanced 8.8 percent to P1,899.
Now Corp., controlled by the Velarde family, jumped 10.7 percent to P6.40. The company expressed interest last week to bid for the third telecom slot to challenge the duopoly PLDT and Globe Telecom.
Conglomerate Ayala Corp., which owns Globe Telecom, climbed 4.1 percent to P1,083.
The rest of Asian markets trimmed gains after an early surge on Monday after Wall Street’s record close.
Tokyo closed flat as late profit-taking erased Monday morning gains, and Shanghai ended the day down one percent.
Hong Kong was also down 0.3 percent in the afternoon after an early surge, but Seoul ended up 0.9 percent and Sydney closed 0.4 percent higher.
Singapore, Bangkok, Wellington and Taiwan all rose, while Jakarta was flat.
The three major US indices all closed at record highs on Friday with earnings season in full swing, on the back of strong earnings announcements.
The trend is expected to continue, with major companies signaling higher profits in anticipation of tax cuts recently enacted in the United States.
With more data expected this week—including from tech giants like Apple, Amazon, Facebook, Alibaba and Google’s parent company Alphabet—analysts say strong results could sustain the positive sentiment in the markets.
“A data-packed week and stock reporting seasons around the globe should see market focus turn to the numbers,” said Michael McCarthy, chief strategist at CMC Markets in Sydney.
But he warned that “a weakening US dollar may prove a brake on any investor exuberance”.
The greenback remains under pressure, after seemingly contradictory comments last week on its strength by US President Donald Trump and Treasury Secretary Steven Mnuchin.
The dollar could experience more turbulence with several major announcements coming up this week, including Trump’s State of the Union address on Tuesday.
“We should expect more two-way uncertainty entering the fray this week which could make for some touch and go moments,” said Stephen Innes, head of Asia-Pacific trading at OANDA.
“But for now, the markets remain comfortable to maintain a longer-term soft USD bias.”
Markets could also be impacted this week by the outcome of a scheduled US Federal Reserve meeting.
The Fed is expected to leave the benchmark US interest rate untouched, but economists say the changing composition of the policy committee could point to faster rate rises in 2018.
Industrial data from China and GDP figures from India are also expected this week. With AFP