Stocks surge to record high

The local stock index on Friday skyrocketed to a new record high as upbeat jobs and housing data in the United States encouraged investors to resume loading up on equities after a three-day slump.

The main-share Philippine Stock Exchange index closed at a fresh all-time high of 4,880.71, gaining 114.14 points or 2.4 percent. The local index also touched a new intra-day high of 4,886.99. This marked the local stock market’s best single-day performance since Oct. 7, 2011, when it surged by 3.1 percent.  Since the start of this year, the PSEi has gained 11.6 percent.

“There was a spillover of positive sentiment into the Philippine market as favorable US data and some progress in Greece increased appetite for equities,” said Manny Lisbona, deputy chief of PNB Securities. “We can expect some follow-through buying in the next few sessions and should view corrections as opportunities to accumulate.”

“PSEi at 5,000 is on the horizon. Earnings of issues are all encouraging, led by PSE, which may have a good dividend payout this year,” said Ramon Garcia, president of local stock brokerage RTG & Co.

PSE president Hans Sicat added that hopes toward a second bailout for Greece as well as positive data on the US jobs and housing markets boosted trading following tepid market movement in the past days.

“Strong corporate and local fundamentals have, in turn, pushed the market further as the gains we posted [yesterday] topped the other market rallies in Asia,” Sicat said.

A strong rally in Wall Street overnight provided a positive backdrop to Friday’s trade. The Dow Jones industrial average surged 123.13 points to close at 12,904.08, the best finish since May 19, 2008, or a few months before the US financial crisis that brought down storied investment bank Lehman Brothers.

Global risk appetite was boosted by reports that weekly applications for US unemployment benefits dropped for the fourth time in five weeks to the lowest since March 2008. At the same time, investors welcomed news of an increase in building permits, which they took as a sign of a growing confidence in the property market.

All counters soared, but the outperformers were the property and services sub-indices, which respectively rose 4.35 percent and 2.9 percent.

Value turnover amounted to P8.29 billion. There were 123 advancers that overwhelmed 56 decliners while 28 stocks were unchanged.

By specific stock, the upswing was led by index heavyweight PLDT, whose shares surged 3.4 percent to close at P2,858. Metrobank, Ayala Land, SM Investments, AGI, Ayala Corp., Megaworld, Globe Telecom, Robinsons Land, Cebu Air, Philez Mining and International Container Terminal Services Inc. also contributed to the PSEi’s gains. Doris C. Dumlao