PSEi breaks past 8,000 barrier

Share prices closed above the much-anticipated 8,000 level for the first time in 15 months on renewed market optimism, analysts said.

The benchmark Philippine Stock Exchange index (PSEi) advanced 73.92 points to close at 8,030.06, while the broader All Shares index rose 29.97 points to end at 4,841.30.

Optimism was prevalent across all counters with the services index rising by more than 1.72 percent.

Volume turnover reached P11.13 billion with advancing stocks edging out decliners 111 versus 80 while 43 stocks were left unchanged.

Analysts said a host of factors are contributing to market optimism and pushing prices up. These include the rally in Wall Street, and the so-called Brexit which has made the Philippines and other emerging markets safer havens for investors compared to other countries with deep economic ties to the United Kingdom and the rest of Europe. The low interest rate environment has also made Philippine shares more attractive than bonds.

“The record run in Wall Street and abating worries in Europe continue to give confidence to our local market,” said Astro del Castillo, managing director at First Grade Finance Inc. “We are seeing a train full of money,” he said. Del Castillo said the index is poised to challenge the all time high of 8,136.

Unionbank trust officer Rob Ramos said in a television interview the index would probably trade at 7,400 to 8,000 level depending on the funds flow.

He said investors would be keeping an eye on second quarter earnings.