PSEi ends past 8,500 for the first time

The local stock barometer closed past the 8,500 mark for the first time in history on Thursday as investors priced in an upbeat US economic view by the US Federal Reserve.

Resuming trades after a two-day mid-week holiday break, the Philippine Stock Exchange index racked up 150.76 points or 1.8 percent to its best-ever finish of 8,516.02.

The PSEi traded between a low of 8,321.65 to a high of 8,543.80.

“Philippine markers traded into new territories once again as it made up for lost time with regional markets closing higher during our two-day holiday. Economic data from several days was rather positive, which helped boost sentiment,” said Luis Gerardo Limlingan, managing director at local stock brokerage Regina Capital Development.

The US Federal Open Market Committee maintained the funds rate target range at 1 to 1.25 percent at its November meeting, as widely expected, but Limlingan noted that the main surprise was the upgrade of the growth assessment to “a solid rate” from “rising moderately.” The statement noted that this growth occurred despite disruptions from the hurricanes, while it attributed the decline in September payroll employment to the storms.

“This return to a ‘solid’ pace of growth—last referenced in the January 2015 statement—underscores the committee’s more positive view on real activity, following softness in parts of the economy over the last two years,” Limlingan said.

The local rally was led by the financial counter, which surged by 3.17 percent, while the holding firm and property counters both rose by over 1 percent.

The industrial and services counters also firmed up.

Only the mining/oil counter slipped for the day.

Value turnover amounted to P9.5 billion. Net foreign buying amounted to P758.47 million.

There were 116 advancers that edged out 79 decliners while 47 stocks were unchanged.

The PSEi was led higher by Megaworld, which surged by 6.94 percent, while Ayala Corp. – the day’s most actively traded company – gained 5.72 percent.

BDO racked up 4.73 percent, while Metrobank added 3.58 percent.

SM Investments rose by 2.62 percent while Ayala Land, BPI, GT Capital, SM Prime and Puregold all gained over 1 percent.

Meralco, Jollibee and PLDT also contributed to the day’s gains.

Outside of the PSEi, notable gainers included Bloomberry (+2.44 percent) and Global Ferronickel (+8.86 percent),

On the other hand, one notable decliner outside the PSEi was cement-maker Cemex, which fell by 1.75 percent.