Philippine bourse hits new high

MANILA, Philippines—The local stock market soared to a new all-time high on Wednesday as investors across the globe took heart from encouraging developments in the United States and Europe.

The main-share Philippine Stock Exchange closed at a new record high of 5,186.20, gaining 28.92 points, or 0.56 percent, and continuing its winning streak for a fifth session in a row.  The index breached the 5,200 level in intraday trade.

“The confluence of positive news from Europe and the US was a strong incentive for buyers,” said PNB Securities deputy chief Manny Lisbona.

“Spain was still able to auction treasury bills, reducing fears that it lacks the ability to raise funds, at least for the short term. In the US, strong earnings results from the likes of technology and financial sector (stocks) boosted investor confidence,” Lisbona said.

Overnight, the Dow Jones Industrial Index surged by 194.13 points, or 1.5 percent, to 13,115.54.

Ramon Garcia, president of RTG & Co., said the PSEi was now moving toward his target of 5,500 by the second semester.

“Expect a more active market in the coming days with the entry of GT (Capital Holdings) coupled with investors’ interest on the issue,” Garcia said.

GT Capital is set to list on the local bourse this Friday.

The index was led higher by Megaworld (+3.45 percent), BDO (+1.43 percent), AGI (+ 3.74 percent), SM Investments (+1.49 percent), URC (+1.95 percent), DMCI (+3.14 percent), ALI (+1.62 percent), AEV (+2 percent) and First Gen (+1.88 percent).

Other second liners like GMA Holdings, Security Bank and Puregold also advanced, respectively rising by 3.45 percent, 2.48 percent and 3.75 percent.

GMA was benefiting from continuing interest from the group of businessman Manuel V. Pangilinan to take over a controlling stake in the broadcasting giant.

Turnover for the day increased to P7.5 billion, closer to the record-high daily average volume in the first quarter. There were 102 advancers versus 75 decliners while 31 stocks were unchanged.

Among the index stocks that bucked the day’s upswing were PLDT, EDC, AC and ICSTI. There was likewise profit-taking on Dizon.