PSEi hits new high of 7,661.18

THE local stock barometer surged to another record high on Wednesday ahead of the release of Philippine year-end economic data and the closely-watched US Federal Reserve (US Fed) meeting.

Gaining for the fourth straight session, the Philippine Stock Exchange index added 30.61 points or 0.4 percent to close at 7,661.18, setting a new milestone for both closing and intra-day peak levels.

The government is scheduled to release the fourth quarter gross domestic product (GDP) report on Thursday (January 29).

“Optimism about the country’s economic performance, coupled with external factors that are favorable to the equities market, continues to support the growth of the market,” said PSE president Hans Sicat.

Since the start of the year, the PSEi has now gained a total of 6 percent.

Local stock brokerage DA Market Securities said the PSEi was continuing to climb uncharted territory on positive economic growth prospects from low oil prices, increased government spending and election spending. It cited a report that the Department of Budget and Management had disbursed 80 percent or P2 trillion of the 2015 budget to maximize funding for government agencies.

DA Market added that the US Fed’s two-day meeting starting on Wednesday and the Philippine GDP report on Thursday may have a larger sway on markets moving forward, alongside the stream of fourth quarter local corporate earnings results.

The US Fed is expected to stick to its guidance of keeping interest rates low until mid-year, DA Market said.

At the local market, value turnover for the day amounted to P8.19 billion. Despite the gain by the main index, market breadth was negative as there were more decliners (94) than advancers (74).

By sub-index, the industrial, holding firm, services, mining/oil and property counters firmed up while the financial counter slipped.

First Gen Corp. (+6.1 percent) was one notable gainer among PSEi stocks while SMIC and Jollibee both gained over 2 percent. DMCI, MPI and Meralco were all up by over 1 percent while
PLDT, AEV, JG Summit, EDC and Megaworld also gained.

Outside of PSEi stocks, Security Bank (+0.27 percent), DNL (+2.55 percent) and FPH (+2.21 percent) gained in relatively heavy volume.

On the other hand, Bloomberry fell by 3.08 percent as investors sold on news after its entry into South Korea was firmed up while URC, BDO, Metrobank, ALI and SM Prime all ended lower.