Stocks break 7,300 resistance on peaceful midterm elections

MANILA, Philippines (Xinhua) - The stock market rallied to a new high, its 30th this year, as positive news at home and from overseas inspired investors to aggressively position on stocks.

The bellwether Philippine Stock Exchange index gained 0.7 percent or 51.08 points to 7,313.46. The broader all-share index rose by 0.41 percent or 18.44 points to 4,535.86.

Trading volume reached 1.47 billion shares worth P10.02 billion ($243 million), with 81 stocks advancing, 81 declining, and 50 unchanged.  

Of the six counters, only the holding firm sector and the mining and oil sector bucked the trend.

"Participants heed macro trends overseas with investors seizing on any intra-day dips to position," 2TradeAsia.com said.

In the United States, retail sales showed a rise in its April performance, suggesting possible strength of the U.S. economy.

Japanese stocks, on the other hand, jumped after Prime Minister Shizo Abe stated the government should share in the blame for the Fukushima disaster in 2011. This eased the burden off Tokyo Electric, the operator of the nuclear plant that sustained leaks in the aftermath of the twin natural disasters that hit the then world's second largest economy.

The recently concluded midterm polls also supported Tuesday's rally.

Analyst Justino Calaycay of Accord Capital Equities Corp. said generally peaceful conduct of the midterm polls and expectations that the Senate will be soon dominated by candidates endorsed by President Benigno Aquino III boosted investor confidence.

Calaycay said this augurs well for the president's legislative agenda, particularly reform initiatives initiated by the president.

"The only concern that continues to be raised on the market is its relatively hyper-extended run," Calaycay said.

The Commission on Elections said that it will proclaim the 12 winning senators on Wednesday. But partial results show that nine of the 12 candidates endorsed by Aquino are poised to win in the senatorial race.

Stocks in the 30-company index were mostly up. These issues include heavyweight Philippine Long Distance Telephone Co., Metropolitan Bank and Trust Co., and Ayala Land, Inc.