PSEi sets new record at 5,365
Analyst: ‘Big will get bigger’By Doris C. Dumlao
Philippine Daily Inquirer
MANILA, Philippines—The local stock index skyrocketed to a new record high of 5,365.70 on Tuesday, outperforming all other Asian markets, as investors bet on favorable local macroeconomic and corporate fundamentals alongside further monetary easing across the globe.
The Philippine Stock Exchange index breached a key resistance at 5,350 and gained 65.46 points, or 1.23 percent. Before closing at a new record finish of 5,365.70, the local stock market also hit fresh all-time intraday peak of 5,374.35.
Regional markets also traded higher on hopes that the weak US and European factory output would prompt further monetary easing among central banks, thus driving yield-seeking investors into equities.
“The Philippines was the best-performing market in the region and by the way the peso is appreciating, it seems that strong gain today is part of a new wave of foreign funds that are flowing into local equities,” said Jose Mari Lacson, head of research at the local stock brokerage Campos Lanuza & Co.
The peso closed on Tuesday at 41.72 to the US dollar, appreciating sharply from Monday’s finish of 42.02:$1.
“Optimism over the outcome of the EU Summit continues to spill over despite the weakness in global manufacturing data. It seems that the market is pricing in the possibility of a global reflation by central banks,” said First Metro Securities Mark Angeles.
Value turnover at the local stock market amounted to P7.09 billion. There were 122 advancers that edged out 52 decliners while 33 stocks were unchanged.
“The uplifting performances of PLDT, SM Investments, Ayala Land, Global Resorts and Puregold in recent days are indicative of the key themes that are driving investor frenzy—dividend yields, rising consumer demand, and tourism plays,” Lacson said.
Shares of index heavyweight PLDT rose by 1.62 percent to P2,760 per share.
“Investors continue to favor large caps. Moving forward, we think the big will get bigger,” Angeles said.
Metrobank, Megaworld, EDC, Metro Pacific Investment, Ayala Corp., SM Prime, ICTSI, ALI, SMIC, Meralco, DMCI, AGI and BDO also contributed to the PSEi’s advance. Among the second liners, Bloomberry, GT Capital, FPH and Security Bank also gained in heavy volume.
The local market surged despite a mixed trading in Wall Street overnight. This was after it was reported that the US ISM manufacturing index fell in June to 49.7 from 53.5 in the previous month, the first contraction seen in nearly three years.
Europe’s manufacturing output also remained sluggish while the jobless rate rose to a record high. The sluggish factory output boosted expectations that major central banks would intervene to perk up the economy.
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