PSEi closes at new record high

MANILA, Philippines—The local stock market closed at a new record high of 5,457.82 on Monday as investors resumed loading up on blue chips in a robust stream of third-quarter profit results as well as prospects of strong third-quarter domestic economic growth and sovereign investment grade rating.

The main-share Philippine Stock Exchange index gained 33.31 points, or 0.61 percent, to post its 24th all-time high for the year, defying sluggish regional markets amid jitters over a tight US presidential race.

In intraday trade, the PSEi hit a high of 5,483.93, retesting but failing to breach the record peak of 5,484.63 posted on October 5. The main index, nevertheless, posted its best finish in history, beating the earlier record close of 5,443.74 on October 4.

Blue chips were back on investors’ radar screens compared to the previous weeks’ appetite for penny stocks as the market started to take position for 2013.

“It’s a breakout. We’re on a bullish trend until February [2013],” said Eagle Equities Inc. president Joseph Roxas. “It looks like local [GDP] will be good and also the market is pricing in a sovereign credit-rating upgrade.”

Manny Cruz, chief strategist at Asiasec Equities, said the market’s upswing was driven by better earnings results posted Monday by Metrobank and Banco de Oro Unibank.

After Moody’s Investor Service’s favorable rating action last week, all three major credit watchers now rate the Philippine foreign debt at only a notch below the much-coveted investment grade.—Doris C. Dumlao

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