Investors took heart from earnings results to boost the stock market to a new high on Monday with the benchmark Philippine Stock Exchange index (PSEi) gaining 1.75 percent or 146.94 points to close at 8,523.07.
The wider All Shares rose 1.42 percent or 69.70 points to settle at 4,968.60.
“Contrary to the regional trend, [the]Philippine market is up. Yung mga [the]good news on the corporate front encouraged investors to buy in the market,” First Grade Finance, Inc. Managing Director Astro del Castillo said.
Monday’s close topped the previous record of 8,516.02 that was hit just last Thursday.
Del Castillo said investors had ignored a government forecast that headline inflation likely accelerated to 3.5 percent last month. Official data is scheduled to be released today.
A Regina Capital Development Corp. analyst, meanwhile, said the local equities market had mirrored Friday’s record Wall Street results.
“Philippine stocks bounced back from the slump after US stocks closed at records on Friday, with major indexes extending their lengthy upward moves on the back of strong results at Apple, which offset a mixed set of economic data, including a weaker October jobs report,” he said.
Joseph Roxas, president of Eagle Equities, Inc. said San Miguel Corp.’s move to consolidate its food and beverage businesses also helped boost the index.
San Miguel on Monday disclosed that it was expanding San Miguel Pure Food Co.’s primary purpose to include alcoholic and non-alcoholic beverages, in the process renaming the firm as San Miguel Food and Beverage, Inc.
The consolidation, involving a P336.35-billion share swap where Pure Foods will acquire shares in San Miguel Brewery, Inc. and Ginebra San Miguel, Inc., boosted Pure Foods shares by the 50 percent — the maximum daily limit.
Harry Liu, Summit Securities, Inc. president, also said the domestic market was still reacting to the US Federal Reserve’s decision to hold off from an interest rate hike.
Elsewhere in the region, markets were largely flat as investors digested US President Donald Trump’s criticism of trade relationships with China and Japan.
Back in Manila, all sub-sectors ended in the green on Monday, with holding firms leading with a 2.45-percent gain.
Over 1 billion shares valued at P7.2 billion were traded.
Winners led losers, 105 to 95, while 41 issues were unchanged.