PSEi surges to new high

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

The main-share Philippine Stock Exchange index surged 1 percent or 47.53 points to close at a new all-time high at 4,747.90, which was likewise the day’s peak. The local stock barometer thus 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 property, financial and mining/oil counters, which surged 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 contributed the most to the PSEi’s rise as the telecom giant finished at a 52-week high of P2,868 a share, up 0.63 percent. The telco, which has the single-biggest weight of  16.6 percent on the PSEi, is the country’s most valuable company with a market cap of P611 billion based on Friday’s close.

Based on PSE documents, PLDT hit an all-time high of P3,285 on Oct. 8, 2007. Adjusted for the dilutive impact of a share-swap deal to take over Digitel, PLDT’s peak is estimated at about P2,963 a share. The telco, which has been attracting strong investor interest due to its dividend yield track record, announced late Thursday the completion of a tender offer to Digitel’s minority shareholders resulting in its ownership of 98 percent of Digitel’s enlarged capital.

“The PSE index record highs are an expression of continued investor confidence in the Aquino administration. Further boosting the 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.

Value turnover yesterday was high at P7.45 billion. There were 108 advancers that overwhelmed 58 decliners while 43 stocks were unchanged.  Doris C. Dumlao