Stocks vault to new high, barely miss 9,000

The local stock market recovered yesterday, reaching another record high as it once again nearly pierced the 9,000 mark.

The benchmark Philippine Stock Exchange index (PSEi), rallied by 78.94 points to close at 8,999.17, while the broader All Shares index gained 39.56 points, or 0.76 percent to end at 5,245.25.

Among the different sectors, the mining and oil index led the gainers, rising four percent from Wednesday level.

Total value turnover was robust at P8.88 billion. Market breadth was positive, with advancing stocks outpacing gainers, 116 to 105 while 41 issues were left unchanged.

Yesterday’s closing was higher than January 23’s 8,999.02 which was the last time the index reached a new record prior to yesterday’s session.

The market had clearly recovered after succumbing to profit taking on Wednesday after the government reported lower-than-expected 2017 gross domestic product at 6.7 percent or slower than the 6.9 percent in 2016.

Fourth quarter GDP was also lower at 6.6 percent compared to the revised seven percent in the previous quarter but same as a year ago level.

With the bulls still very much in the game, the market may continue moving up, traders said.

Miko Sayo, a trader at AP Securities, said the index may continue its bull run.

“I think everybody is fearful the market’s quite high already, but if we follow the trend, we might get new highs soon,” Sayo said, adding that “as long as we continue to hold above 8,000 level, I think we’re going to go higher from here.”

He said that while interest rates are going up and inflation is rising, the bull market is here to stay strong.