Stocks expected to rally anew this week

MANILA, Philippines—Local share prices are poised to reach new record highs in the next few days with the dissipation of fears that Europe’s debt crisis would send the world economy into another nosedive.

The main-share Philippine Stock Exchange Index (PSEi) moved above the 4,400 level in early trading on Friday before settling for a gain of 39.83 points, or 0.92 percent, week on week at 4,391.46.

“The impending resolutions to the fiscal and credit crisis in Europe and the US have given sufficient increase in risk-taking,” local brokerage firm Accord Capital Equities said in a report at the end of the week.

The firm said the main index would likely trade within the 4,330-4,440 range for the week.

“Worries of a further slide past earlier indicated support marks have dissipated and the approaching round of earnings roughly two weeks down the line will provide enough fodder to keep interest in equities heightened,” the company said.

Among the strong performers at the end of the week were companies with interests in power generation, led by San Miguel Corp., First Philippine Holdings and Energy Development Corp.

Miners’ Atlas Consolidated Mining and Philex Mining Corp. were also among the top 10 gainers on Friday.

The Dow Jones industrial index on Friday slipped 0.49 percent, nearly wiping out the gains it made the day before, after US government data showed the lowest gain in job figures in nine months.