PSEi breaches 6,500

(Taken from Bussiness World Online)

The Philippine Stocks Exchange has been one of the top performing bourse since 2011. It records World's 3rd in terms of performance during that year. (Photo by http://alberta.filipinojournal.com)

THE PHILIPPINE Stock Exchange index (PSEi) soared yesterday to its highest level this year, breaching the 6,500 mark, on the back of a rally in Asian shares, slower domestic inflation and positive corporate earnings, analysts said.

The benchmark index surged 60.68 points or 0.94% to settle at 6,516.82 after moving between 6,487.94 and 6,520.33 during the session. That was the index’s strongest finish since the 6,519.58 recorded on Nov. 5 last year.

The broader all-shares index was also in green territory, gaining 29.15 points or 0.75% to 3,910.63.

“There was a spillover optimism on the back of lower-than-expected inflation number,” said Gregg Adrian R. Ilag, analyst at AB Capital Securities, Inc.

Headline inflation eased to 4.1% in February, below market’s consensus of 4.3%, giving monetary authorities the leeway to keep policy rates steady at its meeting later this month.

Grace C. Cerdenia, senior analyst at online brokerage firm 2TradeAsia.com, said the lower inflation reinforced investors’ expectations that the central bank’s key overnight borrowing rate will remain at a record low of 3.5%.

Philippine shares tracked regional markets that extended their rally as diplomatic efforts to abate tensions between Russia and Ukraine were enough to calm investors’ immediate fears of a military confrontation, Mr. Ilag added.

Hong Kong’s Hang Seng climbed 123.19 points or 0.55% to 22,702.97; Japan’s Nikkei 225 index jumped to a five-week high, adding 237.12 points or 1.59% to 15,134.75; while China’s Shanghai composite index edged up 6.49 points or 0.32% to 2,059.58.

Papa Securities Corp. analyst Joanna M. Capiral said investors snapped up shares of JG Summit Holdings, Inc., LT Group, Inc., Emperador, Inc., Petron Corp., and GT Capital Holdings, Inc.

“The extended rally was buoyed by positive corporate earnings results and rosier outlook in the economy,” she said.

JG Summit gained 95 centavos or 1.93% to close at ₱50.05 apiece, while LT Group rose 40 centavos or 2.32% to ₱17.64.

Emperador saw its shares increase by 2.90% or 34 centavos to ₱12.08; Petron added 50 centavos of 3.73% to ₱13.90; while GT Capital climbed ₱18 or 2.30% to close at ₱800.50 apiece.

A total of 5.05 billion shares valued at ₱12.75 billion changed hands from Wednesday’s 1.74 billion shares worth ₱12.95 billion.

Foreigners were in an acquiring mood for the eighth straight session, with net foreign buying amounting to ₱1.38 billion, slightly higher than the previous day’s ₱1.34 billion.

Advancers outperformed decliners, 86 to 82, while 38 issues were unchanged.

Four out of the six counters ended the day in the green.

Industrial jumped 120.71 points or 1.24% to 9,885.77; holding firms added 64.31 points or 1.09% to 5,941.01; financials gained 15.55 points or 1.00% to 1,576.67; while services rose 18.18 points or 0.95% to 1,941.36.

On the other hand, property lost 9.78 points or 0.39% to 2,472.19; while mining and oil shed 55.29 points or 0.38% to 14,465.01.

Jonathan L. Ravelas, chief market strategist at BDO Unibank, Inc., said: “Market’s momentum continues to be on the upside. Seeing a test of the 6,600 to 6,650 level, supported by foreign buying and good earnings.”

2TradeAsia’s Ms. Cerdenia, for her part, said: “Having broken the 6,500 level, a market breather is anticipated again to reinforce stability before the index continues its ascent. Investors will be looking at geopolitical developments to determine market’s direction.”

She placed market’s support at 6,450 to 6,500 and resistance at 6,550. -- J.D.T.C.C.