The stock market hit a new record high on Monday, stopping just short of the 8,300 resistance level on the back of what analysts said was continued investor optimism.
The Philippine Stock Exchange index (PSEi) gained 1.39 percent or 113.29 points to close at 8,294.14. The broader All Shares likewise grew by 1.04 percent or 50.15 points to settle at 4,886.48.
“Well tingin natin (in our view) it’s momentum buying. Most investors remain positive … [the]market is [also]very liquid,” First Grade Finance, Inc. Managing Director Astro del Castillo said.
He added that some sectors, particularly the retail industry, could be benefiting from the end of the so-called “ghost” month.
Ghost month, which started on August 22 and will end today, September 19, based on the Chinese calendar, is a period where investors traditionally hold off from big-ticket plays.
Regina Capital Development Corp., echoed the observation, saying: “Shares continued their upward trajectory as an important trading week sees the end of the ghost month and the meeting of several central banks including our own.”
The US Federal Reserve will kick off a two-day policy meeting on Tuesday, which is expected to set the direction for future rate hikes. The Bangko Sentral ng Pilipinas’ policy-setting Monetary Board will stage its own meeting on Thursday, September 21.
“Both S&P 500 and Dow Jones finished at records, which also propelled the Philippines to new heights,” Regina Capital noted.
The Dow Jones rose 0.29 percent on Friday, the S&P grew 0.18 percent, and the tech-heavy Nasdaq climbed 0.30 percent.
Philippine Stock Exchange President and CEO Ramon Monzon also said that gains on Wall Street and other Asian markets helped local equities.
“We are pleased to see the momentum continuing behind investor optimism over the market’s prospects,” he said.
Sectoral indices were mixed on Monday. The industrial and mining and oil sector were the only ones in the red.
Over 1.3 billion issues valued at P8.1 billion changed hands.
Winners outnumbered losers, 121 to 83, while 46 issues were kept unchanged.