Index breaches 5,700 mark

MANILA, Philippines - The local stock market rallied to another historic high yesterday, breaching the 5,700 mark as investor sentiment continued to be upbeat despite declines in most Asian markets.

The Philippine Stock Exchange index (PSEi) surged 33.58 points or 0.59 percent to finish at a new record high – its 34th this year amid a rosy economic outlook.

Value turnover, however, declined to P8.29 billion on volume of 3.09 billion shares.

The Philippines also got another vote of confidence when the PSEi was included in CNN’s list of 40 best-performing stock markets  around the world this year.  The Philippines was ranked ninth, having gained more than 30 percent since the start of 2012.

According to CNN, the list included stock markets which posted “healthy gains” despite “a volatile year and a slowing global economy.

Venezuela topped the list with year to date gains of more than 200 percent so far this year. It was followed by Egypt, Turkey, Pakistan, and Nigeria.

“At this point, there appears no stopping the market’s rush to more record closes before the year comes to an end. Two major concerns eased: a compromise on Greece’s situation and a reversal in China’s manufacturing numbers. A third thorn may soon be lifted – that is, if the US manages to avoid the fiscal cliff,” said Accord Capital Equities Inc.’s Jun Calaycay.

“With everything appearing to fall into place over the short run, the only thing that pulls the market down are intermittent profit-taking which are in no way heavy enough to reverse the bullish trend,” Calaycay said.

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