Market closes above 8,000
PHILIPPINE stocks closed above the key 8,000 level for the first time as investors continued to bet on prospects here, although the lower-than-expected volume Monday indicated near-term profit-taking, an analyst said.
The benchmark Philippine Stock Exchange Index yesterday rose 0.76 percent, or 60.65 points, to 8,053.74. The broader all-shares index was also up 0.67 percent, or 30.87 points, to 4,607.08.
‘‘It seems momentum buying remains, especially after Asian markets mostly gained on the back of a dismal jobs report in the United States. This could push back further any interest rate increase by the Federal Reserve,’’ Astro del Castillo, managing director at First Grade Finance Inc., said in an interview.
Del Castillo, however, pointed to yesterday’s ‘‘low’’ volumes, with about 2.3 billion shares valued at P6.54 billion changing hands.
‘‘The low value turnover is indicative of profit-taking,’’ Del Castillo said. He added that while investors were expected to pocket gains in the coming days, buying on dips was a good strategy.
‘‘Investors can buy once the market corrects,’’ Del Castillo said, citing positive economic prospects and the upcoming first quarter 2015 corporate earnings season.
Monday’s close was the 25th all-time high for the PSEi this year. The market has so far gained 11.4 percent since the start of 2015 on the back of ample liquidity from global money seeking higher returns.
Data from the PSE showed that net foreign buying covering January to March this year hit P48.87 billion, up 182 percent.
‘‘Closing above the 8,000 level is significant as it reinforces the favorable view that investors have on our market,’’ PSE president and CEO Hans Sicat said in a statement.
‘‘We are optimistic that the positive local developments and upbeat outlook on listed firms will provide more upside potential for the index,’’ he added.
Data from the PSE on Monday showed that all sub sectors, saved for a 0.04 percent decline for financials, closed positive, led by services, which gained 1.68 percent. A total of 92 companies gained while 81 declined and another 47 closed unchanged.
Ayala Corp. led the list of most actively traded stocks as it added 0.13 percent to P800 per share. Miguel R. Camus
