Philippine bourse close higher on expectations of good 2014 economic data

MANILA, Philippines (Xinhua) - The Philippine stock market rallied along with its neighboring equities, posting a new record-high today ahead of the first policy meeting of the US Federal Reserves.

The bellwether Philippine Stock Exchange index rose by 0.58 percent or 43.90 points to 7,630.57, while the broader all-share index climbed by 0.42 percent or 18.75 points to 4,440.66.

Trading volume reached 2.38 billion shares worth P11.66 billion ($264.52 million) with 104 stocks advancing, 91 declining and 38 were unchanged.

Of the six counters, the services and the mining and oil sectors bucked the trend, the latter following a drop in gold prices.

"Markets in the region were racing to two-month highs even as everyone waits for the direcition the new government of Greece will take in addressing the pressing fiscal situation in the troubled nation," analyst Justino Calaycay of Accord Capital Equities Corp. said in his daily stock market comment.

In Greece, leftist Syriza party won the election and 2TradeAsia. com said separately that investors may begin chalking up possible scenarios to prepare for the party's implementation of its pledges.

The local equities however seem to have shrugged off the news and closed at a new record high at 7,630.57, its fifth record-high close for the year.

"Investor interest continues to be fueled by expectations of good 2014 economic data and revenue growth. We are also pleased to note that fund managers remain upbeat about the market's prospects, " said PSE President and CEO Hans B. Sicat in a statement. The PSEi also set a new all-time intraday high Tuesday at 7,631.85.

Also overseas, the US Federal Reserve will start a two-day policy meeting and investors are expecting that the Fed will be patient on tightening.

2TradeAsia.com however warned investors to be cautious as there seems to be a prevailing concern over the market's valuation relative to peers may bring about a temporary breather after it hit another all-time high in the previous session.

Stocks in the 30-company index closed mixed. Share prices of SM Investments Corp., Ayala Land, Inc. and BDO Unibank, Inc. were picked up, but investors dumped shares of heavyweight Philippine Long Distance Telephone Co. and Cebu Air, Inc.