The local stock barometer rallied to a new record high Wednesday, piercing the 7,500 mark for the first time in intra-day trade as investors bet on the favorable impact of lower oil prices on the Philippine economy.
The Philippine Stock Exchange index (PSEi) advanced by 91.88 points or 1.24 percent to close at 7,490.88, defying the slump elsewhere in regional markets. The PSEi also hit a new intra-day peak of 7,530.41.
Most counters firmed up, led by the property sub-index, which rose 2.1 percent, while the industrial and services counters both gained more than 1 percent.
Only the mining/oil counter was in the red for the day, tracking the slump in global commodities.
“With (low) gas prices fueling (consumer) demand and low inflation rate in December, the economy has room to grow,” said Joseph Roxas, president of local stockbrokerage Eagle Equities Inc.
The index rallied despite the start of a long weekend, during which many investors would otherwise typically hedge by paring down holdings. It was the second time this year that the PSEi marked new highs both in closing and in intra-day trading.
“We are back in uncharted territory,” said Manuel Lisbona, deputy head of PNB Securities. “Short-term players are advised to tighten their stops while longer term players can buy on dips.” Doris C. Dumlao