PH stock index reaches new high for 28th time

THE Philippine stock index on Friday Tuesday rebounded to its 28th alltime high as investors chose to remain optimistic towards domestic front.

Freya Natividad, analyst at the online brokerage 2TradeAsia.com, said that the technical rebound after the fall on Thursday was caused by repositioning and optimism within the local market.

“There was a technical rebound after the fall as others reposition for their 2013 bet,” she said.

“Other drivers include the continued optimism among investors towards the local trend,” Natividad added.

She took note of the present low interest rates which also triggered good indices figures.

The Philippine Stock Exchange (PSE) index recovered from its decline on Thursday, rising to another new record high of 5,552.34, a 28.97-point increase or 0.71 percent.

The broader all-shares also inched up by 0.51 percent or 18.19 points to 3,609.26, while value turnover was at P5.61 billion.

“Upbeat expectations on both the listed company and macroeconomic fronts continue to infuse excitement in our investors. Local developments have been able to over- shadow ongoing concerns abroad, and this certainly bodes well for the market as we look to end 2012 on a high note,” said PSE Chief Operating Officer Roel Refran.

Majority of the sub-indices ended in the green, indicating that market breadth was positive as the week ended.

The financials counter soared 1.31 percent or 19.16 points to 1,480.57, followed by holding firms, which closed at 4,890.74 or 40.84 points. Industrial was 0.58 percent higher or 50.58 points to close at 8,734.96.

A stock analyst said that the financial counter, which was up by more than 1 percent, has helped the local index climbed high to another new record.

The reason cited was the merger news between the Bank of the Philippine Islands and Philippine National Bank.

Meanwhile, the property counter also went up by 0.50 percent or 10.42 points to 2,095.35.

Mining and oil, on the other hand, was down 0.48 percent or 89.90 points to 18,721.51, while services ended flat with a 0.02-percent decline or 0.27 points to 1,693.22. Advancers won over losers, 88 to 72. On Thursday, the local index broke its upward trend momentum, closing 0.38 percent lower or 20.81 points to 5,513.37. Prior to that, the PSE index set new highs for two consecutive days.