THE LOCAL stock barometer retested 8,000 in intra-day trade for the first time this year as stimulus hopes drowned out jitters over Brexit or Britain’s exit from the European Union across regional markets.
The Philippine Stock Exchange index (PSEi) hit an intra-day high of 8,005.73 before paring gains and closing at 7,944.02, the highest finish seen this year. The index gained a modest 6.07 points or 0.08 percent, rising for the fourth straight session.
Outside the PSEi, Philex Petroleum (PXP) surged by 14.47 percent in heavy volume, benefiting from the UN Tribunal’s favorable ruling on the Philippines’ maritime rights in West Philippine Sea.
PXP operates service contract (SC) 72 in the Recto Bank area, offshore west Palawan, which is subject to such international maritime issues. Another block affected by the dispute is SC 75 in Northwest Palawan, which was placed under “force majeure” (unforeseeable circumstances that prevent someone from fulfilling a contract) in December 2015. After the ruling, PXP will await the go-signal from the government before resuming drilling operations which were disrupted by the dispute with China.
The last time the PSEi probed the 8,000 level was in April 14, 2015 when the index closed at 8,056.49.
“The attempt to revisit previous highs is a reflection of continued interest in our stock market. Philippine equities remain to be a favorite among our peers in the region given its resilience during volatile conditions. Interest is also fuelled by the growth prospects of the country, particularly in sectors that are expected to do well based on the priorities of the new administration,” said PSE president Hans Sicat.
Overall, net foreign buying amounting to P2.5 billion perked up the market. There were 102 advancers that beat 87 decliners while 57 stocks were unchanged.
The day’s gains were led by the property, industrial, services and mining/oil counters. These made up for the slack in financial and holding firm counters.
About P11.41 billion worth of shares changed hands at the stock market.
The PSEi was led higher by SM Prime, which rose by 1.87 percent. It was the most actively traded stock in the market.
ALI, Metrobank, AC, BPI and PLDT also contributed to the PSEi’s rise.
On the other hand, MPI, BDO, JG Summit, Globe Telecom and RLC fell by over 1 percent. SMIC, Jollibee, AEV and ICTSI also slipped.
Since the start of the year, the PSEi has gained 14.27 percent.
Elsewhere in the region, stock markets were also upbeat due to rosy economic prospects for the U.S. growth alongside stimulus hopes post-Brexit vote in the UK.