PSEi rallies above 8,000 on positive sentiment

THE BELLWETHER INDEX rallied yesterday to close above the 8,000 mark after positive sentiment on Wall Street spilled over to the Philippines and as investors remain bullish on local concerns.

The Philippine Stock Exchange index ( PSEi) reached a new year-to-date high on Monday as it closed at 8,001.38, gaining 93.72 points or 1.19% from Friday’s finish. This is the PSEi’s best close for the year thus far.

The all shares index gained 0.94% or 44.14 points to 4,760.27.

“Sentiment from Friday was carried over after US equities rose to record levels on Friday as Wall Street shrugged off a jobs report that came in well below expectations,” said Luis A. Limlingan, business development head at Regina Capital Development Corp.

US stocks closed at record levels for a second consecutive session on Friday, as gains in technology and industrial stocks more than offset a lukewarm jobs report. The Dow Jones Industrial Average rose 62.11 points or 0.29% to 21,206.29; the S& P 500 gained 9.01 points or 0.37% to 2,439.07; and the Nasdaq Composite added 58.97 points or 0.94% to 6,305.80.

Other analysts attributed the increase to positive sentiment on local developments. Alexis Cabel, research head at Corpecon Data Research Services, said the PSEi broke through the 8,000 level on an anticipated resolution of the conflict in Marawi City in Mindanao, where government forces continue to fight it out with the terrorist Maute group.

“On one hand, the market as seemingly unaffected so far by recent events should continue to display its resilient character. Alternatively, the technical or psychological 8,000 barrier remains intact and requires a stronger, sustainable catalyst to be surrendered to the bulls,” said Justino B. Calaycay, Jr., senior research analyst at Philstocks Financial, Inc.

He added that this week, the market will keep on a “sideways trend with a slight positive bias... well supported by fundamentals but wary of emerging risks.”

Joseph Y. Roxas, president of Eagle Equities, Inc., said he was “bullish” this week after the identity of the Resorts World Manila gunman was revealed.

Authorities on Sunday said the man responsible for the death of 37 guests and employees of the casinohotel-mall complex was a former employee of the Department of Finance hooked on gambling.

On Monday, all sectoral indices finished in the green. Financials led with a 30.61- point increase or 1.57% to 1,976.31, followed by services, which gained 23.93 points or 1.39% to finish at 1,741.25. Holding firms added 1.36% or 106.55 points to 7,953.67; mining and oil went up 1.20% or 149.27 points to 12,568.54; property climbed 0.92% or 34.08 points to 3,740.42; and industrials rose 0.14% or 15.18 points to close at 11,112.93.

Trading value was at P8.65 billion, down from P9.13 billion on Friday.

Advancing stocks reached 116, widely outpacing decliners at 80. Shares unchanged were numbered at 43.