PSEi hits all-time high

The local stock barometer surged to an all-time high beyond 7,400 Friday as investors anticipate much-improved Philippine corporate earnings and windfall from weakening global oil prices this 2015.

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 the 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 stockbrokerage Asiasec Equities.

A major barrier for the market in the near-term would be at 7,420 plus the existing intra-day peak of 7,446.66, Cruz said. Once breached, he said the market could head toward 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 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.

The gains were led by the services counter, which rose 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. Doris C. Dumlao