Index breaches 7,500 on renewed optimism

The performance of the stock market yesterday continued to reflect renewed investor optimism, analysts said.

The benchmark Philippine Stock Exchange index, the local stock market barometer, gained 66.98 points, or 0.90 percent, to finish at 7,514.00, while the broader All Shares was also on an upswing, with an increase of 30.30 points or 0.67 percent to finish at 4,535.53.

Majority of the sectoral indices likewise benefited from rejuvenated market investors.

Among the gainers were the financials, services, holding firms and property while the industrial index and the mining and oil lost 0.74 percent after rallying soon after President Duterte’s State of the Nation Address.

Mining industry players said that while Duterte reiterated plans to ban open-pit mining, his pitch for federalism gave mining companies reasons to be optimistic as mining policies would now depend on each federal region.

Meanwhile, total value turnover improved at P6.902 billion and market breadth was positive, 125 to 72 while 46 issues were unchanged.

Marvin Germo, stock trader and author of StockSmarts said that if the PSEi continues to stay above the 7,456 level, the next possible target will be 7,735 and 7,900.

At the same time, Gio Perez of Papa Securities, said net foreign buying of as much as P246.3 million pushed the index forward.