MANILA, Philippines–The benchmark Philippine Stock Exchange index (PSEi) closed above 7,800 for the first time as investors continued to bet that domestic equities will continue to rise following improving economic prospects and positive corporate results.
The PSEi ended Wednesday’s session up 0.13 percent, or 10.05 points, to a new record of 7,803.45. It also hit a new intraday high of 7,840.39. The PSEi has gained 7.9 percent so far this year.
“There continues to be a stream of good news: OFW remittances, corporate earnings results—this has encouraged buying,” Astro del Castillo, First Grade Finance Inc. managing director, said in an interview.
Last week, the Bangko Sentral ng Pilipinas also kept key interest rates steady while cutting its inflation forecast for 2015.
“While the market is really ripe for a correction, it’s really hard to stop a train full of money,” Del Castillo added.
Data from the PSE showed most sub-indices ended in the green, save for financial companies and mining and oil, which slipped 0.34 percent and 1.31 percent, respectively. Gains were led by property firms, which rose 0.5 percent.
Del Castillo noted that volumes were still lower than typical and that a near-term consolation could still be expected. Data from the PSE showed that a total of 3.75 billion shares changed hands for P6.49 billion. A total of 92 companies ended positive while 86 closed in the red and 51 companies were unchanged.
Ayala Land Inc. led the list of most actively traded stocks as it gained 0.14 percent to P35.60. It was followed by SM Prime Holdings Inc., up 1.73 percent to P19.94; Philippine Long Distance Telephone Co., up 0.25 percent to P3,190 per share; Universal Robina Corp., up 1.02 percent to P217.40, and Metro Pacific Investments Corp., down 1.39 percent to P4.98 per share. Miguel R. Camus