MANILA, Philippines – The local stock market raced to new record highs on Monday, allowing the main index to breach the 7,000-mark for the first time, on optimism over first quarter local corporate earnings reporting season.
The Philippine Stock Exchange index rallied by 75.86 points, or 1.09 percent, in the morning trade to 7,032.96.
“The PSEi breached the 7,000 level and continues to be one of the ‘it’ markets of 2013. Bullish sentiment has taken over as first quarter earnings releases go into full swing,” said Mark Angeles, head of research at First Metro Securities.
Some dealers said expectations that a second global credit rating firm may issue an investment grade rating on the Philippine sovereign as early as May also excited investors.
The upcoming monetary setting of the Bangko Sentral ng Pilipinas on Thursday, whereby another hefty cut in the rates on special deposit accounts is widely expected, is also seen driving some yield-seeking investors to equities.
SM and Ayala stocks traded higher in heavy volume in early session. SMIC (+2.22 percent) and BDO (+2.71 percent) were boosted by BDO’s record-high P20.4-billion profit guidance for 2013, of which P10 billion had been achieved in the first quarter.
Ayala Corp. (+3.95 percent), Ayala Land (+0.95 percent) and BPI (+1.83 percent) also rose on upbeat outlook and fresh expansion plans.