PSEi scales new heights

PSE trading floor AFP PHOTO / Jay DIRECTO

The local stock barometer scaled new heights beyond the 8,100 mark on Thursday as investors took their cue from record-high stocks trading in Wall Street.

The main-share Philippine Stock Exchange index (PSEi) racked up 91.03 points or 1.13 percent to close at its best ever finish of 8,144.91. This beat the PSEi’s previous all-time high closing of 8,127.48 posted on April 10, 2015.

The PSEi hit as high as 8,169.64 in intra-day trade, likewise beating the previous intra-day record high of 8,136.97 posted on April 7, 2015.

“The stock market’s surge to a record high underpins investor confidence in the local economy and in the Philippine capital markets. The Philippines remains a favorite among emerging markets as it continues to provide attractive returns,” said PSE president and chief executive officer Ramon Monzon.

Local investors powered the PSEi’s rise to a new high, while foreign investors were net sellers amounting to P99.8 million.

Veteran stock broker Joseph Roxas, president of Eagle Equities Inc., said the local stock market tracked the surge in US stocks to record highs. “It’s due to better unemployment and export data,” he said.

At the same time, Roxas said the so-called ghost month – a period of caution for many investors – was nearing its end. The last day of the ghost month is on Sept. 19 (next Tuesday).

But while the PSEi had breached uncharted territory, Roxas said it remained to be seen whether this breakout would be sustainable, citing lack of volume. For the breakout to be confirmed, he said the PSEi should continue trading at these levels with volumes amounting to P10 to P15 billion.

Value turnover for the day amounted to P8.45 billion.

Since the start of the year, the PSEi has gained 19.1 percent.

All counters ended in the green, led by the holding firm, mining/oil and property counters which all advanced by over 1 percent.

There were 111 advancers that edged out 85 decliners while 62 stocks were unchanged.

The PSEi was led higher by JG Summit, which surged by 4.83 percent, while Semirara and GT Capital both gained over 3 percent.

SM Prime rose by 2.99 percent while Ayala Land, SM Investments, Megaworld, DMCI and Jollibee all gained over 1 percent.

BDO Unibank, Metrobank and PLDT also firmed up.

Outside of PSEi stocks, one notable gainer was Filinvest Land, which climbed by 4.23 percent.

On the other hand, Metro Pacific, Ayala Corp., Puregold and BPI ended slightly lower.

One notable decliner outside PSEi stocks was integrated gaming resort operator Melco Resorts, which lost 3.3 percent.