Stock market index zooms to new heights

MANILA, Philippines—The local stock market sprang to unprecedented heights for a  third day in a row on Friday, powered largely by strong investor interest on index heavyweight Philippine Long Distance Telephone Co.

The main-share Philippine Stock Exchange index surged by 1 percent or 47.53 points to close at a new all-time high at 4,747.90, the day’s peak.

The local stock barometer gained a total of 134.07 points or 2.9 percent this week as strong foreign fund inflows offset profit-taking by local investors.

All counters trekked higher, led by the property, financial and mining/oil counters, which surged by 2.3 percent, 1 percent and 1.27 percent, respectively.

Property and banking stocks benefited from a much-awaited 25-percent key interest rate reduction by the Bangko Sentral ng Pilipinas on Thursday.

PLDT, however, contributed most to the PSEi’s rise as the telecom giant finished at a 52-week high of P2,868 per share, up by 0.63 percent.  The company, which has the single largest weight of 16.6 percent on the PSEi, is the country’s most valuable company with a market capitalization  of P611 billion based on Friday’s close.

Based on PSE data, PLDT hit an all-time high of P3,285 on October 8, 2007.  Adjusted for the dilutive impact of a share-swap deal to take over Digitel, PLDT’s peak is now estimated at about P2,963 per share.

“In the domestic front, the PSE index record highs is an expression of continued investor confidence in the Aquino administration. Market seems supportive of bold moves to reform as well the judiciary. Further boosting capital market is shares gain in Asian markets primed obviously by good news that Europe and US economies stayed on recovery track,” PSE chair Jose Pardo said in a text message.

Pardo said he had predicted as early as December that the PSEi would breach the 4,700 level this January.

The PSE chair added he was happy that the extension of trading hours into the afternoon had been executed this year despite initial opposition from some trading participants.

“It was a calculated leap of faith,” Pardo said.

Turnover on Friday was high at P7.45 billion.  There were 108 advancers against 58 decliners while 43 stocks were unchanged.

Since the start of the year, the index has rallied by 375.94 points or 8.6 percent.  In 2011, the PSEi’s modest gain of 4 percent made the local stock market the best performing in Asia.