Philippine Daily Inquirer - - BUSINESS - By Doris Dum­lao-Abadilla @Philbizwatcher

The lo­cal stock mar­ket yes­ter­day reached a new high as in­vestors de­ployed am­ple liq­uid­ity to buy prop­erty and bank­ing stocks that track eco­nomic cy­cles.

The main-share Philip­pine Stock Ex­change in­dex (PSEi) gained 45.13 points or 0.54 per­cent to a new record fin­ish of 8,447.94. This was on the back of se­lec­tive buy­ing of large-cap stocks.

The main in­dex closed at the day’s peak, which like­wise set a new in­tra­day high record.

Joseph Roxas, pres­i­dent of lo­cal stock­bro­ker­age Ea­gle Eq- uities, said liq­uid­ity from the re­cent ten­der of­fer of geo­ther­mal firm En­ergy Devel­op­ment Corp. was still driv­ing the mar­ket higher as in­vestors sought to re­de­ploy pro­ceeds.

“It was another fan­tas­tic rally. Mar­ket mo­men­tum is still strong. It’s re­ally dif­fi­cult to stop a train full of money,” said Astro del Castillo, man­ag­ing di­rec­tor at fund man­age­ment firm First Grade Fi­nance.

Re­ports of the Bangko Sen­tral ng Pilip­inas’ san­guine view on for­eign di­rect in­vest­ments for this year, pos­si­ble in­crease in rev­enues of the Bu­reau of Cus­toms and the gov­ern­ment’s road­show in the US like­wise gave ad­di­tional con­fi­dence to in­vestors, Del Castillo said.

“Value turnover is much big­ger to­day as well. It seems like the in­dex could test the 8,500 level. How­ever, profit-tak­ing could en­sue be­fore we break the next bar­rier,” he added.

For­eign in­vestors were net buy­ers in the mar­ket amount­ing to P651.18 million.

The day’s up­swing was led by the pro-cycli­cal prop­erty and fi­nan­cial coun­ters, which re­spec­tively gained by 1.09 per­cent and 1.92 per­cent. The in­dus­trial counter slightly rose.

On the other hand, the hold- ing firm, ser­vices and min­ing/oil coun­ters slipped.

To­tal value turnover for the day amounted to P9.56 bil­lion.

De­spite the PSEi’s record per­for­mance, mar­ket breadth was neg­a­tive. There were 106 de­clin­ers that edged out 91 ad­vancers while 45 stocks were un­changed.

Bank­ing blue chips BDO and Se­cu­rity Bank led the main in­dex higher, both ris­ing by more than 3 per­cent, while Metrobank added over 2 per­cent. Prop­erty giants SM Prime and Ayala Land both rose more than 1 per­cent along­side con­glom­er­ates SM In­vest­ments, Metro Pa­cific and GT Cap­i­tal.

Newspapers in English

Newspapers from Philippines

© PressReader. All rights reserved.