Stock price index breaches 8,300 mark

The local stock barometer breached the 8,300 mark for the first time in intra-day trade yesterday, tracking firmer US stocks as the US Federal Reserve remained on track to raise interest rates this year.

The main-share Philippine Stock Exchange index (PSEi) hit a high of 8,321.81 but pared gains to close at 8,286.86, adding 67.54 points or 0.82 percent.

Investors were also emboldened by Economic Planning Secretary Ernesto Pernia’s projection that average economic growth this year could hit the middle of the government target range of 6.5-7.5 percent.

The stock market rally overshadowed the “national day of protest” yesterday, said Astro del Castillo, managing director at fund management firm First Grade Finance.

“Investors ignored the political noise. Most were focused on the good news here and abroad. There were no surprises made by the Fed and the US economy remains on track to recovery. News about tax reforms inching to be approved gave additional confidence to investors,” Del Castillo said.

The Senate committee on ways and means has approved the tax reform program albeit the form differed from the version endorsed by the Department of Finance.

“Domestic liquidity and improved optimism could still encourage the local market to flirt toward the 8,300 level but there are already signs of possible profit-taking,” he said.

The PSEi is moving closer to the all-time high finish of 8,294.14 posted on Sept. 18.

Thursday’s intra-day peak of 8,321.81, however, set a new record intra-day high for the PSEi.

All counters firmed up but the PSEi was led higher by the counter for holding firms, which advanced by 1.27 percent.

Value turnover for the day stood at P7.96 billion. There were 107 advancers that edged out 95 decliners while 54 stocks were unchanged.

AGI led the PSEi’s rally, rising by 7.64 percent. The conglomerate led by tycoon Andrew Tan recently announced a P5-billion stock buyback program.

Meralco also gained 3.4 percent while URC, JG Summit and Puregold all rose by more than 2 percent.