PSEi hits new highs

The local stock barometer surged to all-time highs beyond 7,400 on Friday as investors anticipate much-improved Philippine corporate earnings and windfall from weakening global oil prices this year.

Extending its winning streak for the 10th session amid a backdrop of upbeat global markets, the local stock barometer gained 35.09 points or 0.48 percent to close at 7,402.72.

A new record intra-day peak was likewise posted at 7,446.66 but there was profit-taking that brought the index to a lower close.

“The key driver is expectation that Philippine economy will benefit from weak crude prices and, apart from that, there’s consensus on corporate earnings of close to 15 percent, coming from only 1.1 percent increment in 2014,” said Manny Cruz, chief strategist at local stock brokerage Asiasec Equities.

A major barrier for the market over the near-term will be at 7,420 plus the existing intra-day peak of 7,446.66, Cruz said. Once breached, he said the market could head towards 7,800 within this year.

In 2014, the PSEi extended the winning streak it started in 2009 and finished higher for a sixth consecutive year after closing at 7,230.57, up by 22.8 percent year-on-year.

“While we are eager to see the index continue its uptrend, we hope that all other market indicators like the trading volume and value will outperform 2014 numbers as well,” said PSE president Hans Sicat.

On Friday, the gains were led by the services counter which rose by 1.1 percent while the financial and holding firm sectors likewise firmed up.

On the other hand, the industrial, property and mining/oil sectors slipped.

Value turnover amounted to P8.87 billion. There were 101 advancers that edged out 88 decliners while 42 stocks were unchanged.

Investors snapped up shares of PLDT (+1.79 percent), the day’s most active traded stock, as well as GT Capital (+2.59 percent).

Metrobank, SMIC, EDC, MPI and SM Prime also rose by over 1 percent while BDO, URC, AC, LTG and AEV also contributed gains.

On the other hand, Jollibee slumped by 2.87 percent. ALI and ICTSI also trekked lower.