THE LOCAL stock barometer surged to a new record high of 7,586.67 on Monday ahead of the release of the country’s fourth quarter economic results and the stream of corporate earnings alongside the highly anticipated influx of more portfolio investments to emerging markets with the European Central Bank’s fresh monetary stimulus.
After a rough start, the main-share Philippine Stock Exchange index (PSEi) rebounded in afternoon trade, gaining 37.74 points or 0.5 percent to close at 7,586.67. This marked a new all-time high both for closing and intra-day levels.
The market’s moving averages were now bullish, said Luis Gerardo Limlingan, managing director at local stockbrokerage Regina Capital Development Corp.
“We retain our buy recommendation this week as advances to 7,600 are highly likely should fourth-quarter GDP (gross domestic product) come in at over 6 percent. With sustained volatility for the last two weeks, it is possible to reach 7,700. However, this volatility may also cause corrections but we advise traders to take advantage of those while keeping close watch on key support levels,” Limlingan said.
In a research note, DA Market Securities said the PSEi was “poised to tread uncharted territory and make fresh highs, notwithstanding volatility from external leads. Locally, the economy is supported by low oil prices and faster economic growth on the back of increased government spending and election spending.”
Value turnover for the day amounted to P10.24 billion. Despite the main index rise, there were slightly more decliners (94) than advancers (92), suggesting that investors were shifting to smaller-cap stocks in search for cheaper valuations. Doris C. Dumlao