Index hits 1-year high on strong buying

MANILA, Philippines - Strong buying momentum carried the benchmark stock index to its best closing in nearly a year, traders said yesterday.

The Philippine Stock Exchange index (PSEi) jumped 0.40 percent or 27.63 points to 6,880.44, marking its best finish since ending at 7,021.95 on May 31, 2013. The broader All Shares index dropped 0.03 percent or 1.23 points to 4,134.75.

“The momentum of last week’s breach of the 6,800 mark continues to flow with the PSEi testing the 6,900 psychological resistance inside the first hour off the opening bell,” said Justino B. Calaycay Jr., analyst at Accord Capital Equities Corp. PSEi hit an intraday high of 6,906.63 yesterday.

“Even as value activity still favor index-component counters, we are seeing the stirrings of flows into off-index, including what may be considered third tier issues,” Calaycay said, adding that stocks like Cyber Bay, 8990 Holdings, Century Pacific and DoubleDragon posted strong turnover.

Overseas, Wall St. managed to close slightly higher on Tuesday as investors continued to pick stocks. The Dow Jones industrial average gained 0.12 percent or 19.97 points to 16,715.44, while the broader Standard & Poor’s 500 index inched up 0.04 percent or 0.8 point to 1,897.45, both again closing at record highs.

Asian stocks followed the trend, also buoyed by hopes the European Central Bank will increase its stimulus package.

Locally, most counters were in the positive territory, led by the property sector that rose 0.77 percent or 21.05 points to 2,753.73. But mining and oil retreated 1.01 percent or 167.68 points to 16,491.72.