Index soars above 7,200-mark for 1st time this year

MANILA, Philippines - The Philippine Stock Exchange index (PSEi) rallied yesterday, soaring above the 7,200-mark for the first time this year.

The benchmark PSEi expanded 1.40 percent or 99.46 points to close at a fresh 15-month high of 7,206.02. It was the local stock barometer’s best closing since ending at 7,228.57 on May 29, 2013. The broader all shares index also climbed 1.05 percent or 44.17 points to 4,252.99.

Investors agreed that Wednesday’s market performance came out as a surprise.

“Not many may have expected, even as they hoped for, an early test of the 7200-mark given fundamental valuations, technical and external geopolitical and economic concerns—in addition to the fall in US stocks overnight. But that is what the market did today,” Accord Capital Equities Corp. analyst Justino Calaycay Jr.

With the index defying and delaying correction expectations, Calaycay said investors seem unworried over August inflation results which are due to come out on Friday.

AB Capital Securities Inc. analyst Joyce Ramos attributed Wednesday’s market rise mainly to the positive result of the global competitive index in which the Philippines improved its ranking by seven notches.

“It’s really a bit surprising, especially that the increase was big. It is also quite surprising how the market reacted more to the positive global competitive ranking instead of the positive second quarter gross domestic product result,” Ramos said.

Advancers pounded decliners in the local bourse for the third consecutive session, 105 to 69, while unchanged issues stood at 58. Net value turnover grew to P12.74 billion.