Bullish trend continues; index hits new record high

MANILA, Philippines - Local stocks rallied to another fresh record high yesterday, sending the main benchmark index above the critical 5,300 level on upbeat sentiment over first quarter earnings results and the country’s macroeconomic fundamentals.

The Philippine Stock Exchange index (PSEi) gained 71.57 points or 1.37 percent to finish at its 19th all-time high at 5,300.41 as investors shifted from fixed income to equities. The PSEi has risen by 21.24 percent year-to-date.

Intraday, the PSEi reached another record level at 5,300.52, beating the previous day’s level at 5,269.97.

“Expectations of stronger economic growth have spurred more investor interest in the equities market. The administration’s recent projection of a five to six percent economic growth in 2012 is also affirming this sentiment. Hopefully such growth will continue to redound on corporate earnings and sustain the market’shike to new levels,” said PSE president Hans B. Sicat.

All sectors posted gains, with value turnover reaching P9.10 billion on 3.09 billion shares chan-ging hands. Advancers led losers 83 to 79 while 42 issues closed unchanged.

“While leads have been thin beyond earnings and tomorrow’s release of April inflation numbers, external influences have given trades a positive spin to keep the bears at bay,” said Accord Capital Equities Inc.’s Jun Calaycay.

Among the market’s biggest movers were Aboitiz Equity Ventures, which rose 3.92 percent to close at P53, Ayala Corp. (up 4.4 percent at P462.6), Ayala Land (2.58 percent up at P21.90), SM Investments Corp. (up 1.4 percent at P710), and JG Summit (P35.50).

Top net foreign buys were Security Bank, Alliance Global Group, Ayala Corp., JG Summit, SMIC, and AEV.

Meanwhile, Asian stock markets were mostly lower Thursday after disappointing jobs figures from the US and Europe dimmed confidence in an economic recovery.

Investor nerves was tested by a report that showed US businesses adding far fewer jobs in April than they did in March. The private survey by payroll processor ADP said US businesses added 119,000 jobs in April, down from 201,000 in March.

The Economic Policy Institute calculates that the United States would have to create 350,000 jobs a month for three years to return to pre-recession employment levels. The US government releases its monthly figures, which include the public sector, on Friday. The government and ADP reports can vary sharply.

Hong Kong’s Hang Seng fell 0.4 percent to 21,225.25, a day after posting strong gains. The Shanghai Composite Index followed suit, slipping 0.2 percent to 2,434.81 after racking up a big advance Wednesday.

South Korea’s Kospi lost 0.3 percent to 1,992.42. Australia’s S&P/ASX 200 edged down marginally to 4,435 though many traders sat on the sidelines ahead of the release of the national budget next week.

Benchmarks in India, Taiwan and New Zealand also fell. Singapore, Indonesia and Thailand were marginally higher. Markets in Japan were closed for a public holiday.

US stocks ended mixed Wednesday after the troubling jobs reports. The Dow Jones industrial average fell 0.1 percent to 13,268.57. The Standard & Poor’s 500 fell 0.3 percent to 1,402.31. The Nasdaq composite index rose 0.3 percent to 3,059.85.