The local stock index closed at a new record high of 6,891.43 Friday as upbeat global markets alongside record-low local interest rates boosted risk-taking even as local stock valuations have mostly hit expensive levels.
Rising for the fourth straight session, the main-share Philippine Stock Exchange index added another 59.69 points or 0.87 percent. The closing level of 6,891.43 was likewise the intra-day peak. For the week, the index gained 164.29 points or 2.44 percent.
Friday’s finish marked the 25th time that the PSEi set new record closing levels this year. The index is also moving toward the record intra-day high of 6,956.92 recorded on April 1.
The day’s rally broke the previous record high closing of 6,847.47 on March 27, when the index surged by 2.84 percent.
“We expect this bullishness to continue as interest rates remain low. The market’s all-time high reflects investors’ preference for equities as the better investment alternative than fixed income. Let’s enjoy the ride but always remain prudent,” said Marvin Fausto, chief investment officer at Banco de Oro Unibank.
“This is due to the continued euphoria in global markets, particularly in Wall Street. Climate change (from pessimism to optimism) is being felt here. The mood for positioning and buying is still there,”
said Astro del Castillo, managing director at investment holding firm First Grade Finance.
Value turnover for the day, however, was relatively thin at P7.59 billion. There were 99 advancers as against 54 decliners while 48 stocks were unchanged.
DMCI was the day’s biggest index gainer (+5.78 percent) still on the back of a dividend play. The company announced on Thursday a record dividend payout of P1.20 for every common share plus a special cash dividend of P1 a share for stockholders on record as of April 26.
Other big contributors to the PSE’s gains were Globe (+3.62 percent), Belle (+2.75 percent), MPI (+2.31 percent), Metrobank (+2.23 percent), PLDT (+1.88 percent), Semirara (+1.73 percent), SMIC (+1.43 percent), SMC (+1.31 percent) and JG Summit (+1.23 percent). Doris C. Dumlao