FRESH from a long break, Philippine shares climbed to a nine-month high on Monday, breaching the 6,700-points level, as positive global developments lifted investor sentiment.
Bucking the weaker trend in the region, the Philippine Stock Exchange index (PSEi) surged 1.44 percent to close at 6,767.51, up 96.33 points, while the broader all shares gained 50.74 points or 1.26 percent to close at 4,063.77.
The first time that the market hit the 6,700-point level was in February last year, when the index settled at 6,721.33.
“A favorable news front over an extended Lenten weekend delivered positive impetus to this week’s opening trades, extending the PSEI’s winning run to a third day and validating the 6570 to 6600 support band,” Accord Capital Equities Corp. analyst Jun Calaycay said.
He said some global developments also lifted investor sentiment, helping trigger the local market’s sharp rise.
“Tensions in Ukraine eased following a pact reached by the Western allies and Russia. The problem now shifts to implementing the provisions of the agreement, which hopefully will temper or put a stop to the exchange of sanctions that may eventually prove detrimental to global growth should it extend further to segments of the economy,” Calaycay explained.
He said positive numbers from the US on the jobs and manufacturing fronts also cheered market players.
All the sectoral indices were as buoyant as the main index, with services climbing 43.69 points or 2.22 percent to 2,014.24, followed by the property counter, which advanced 57.59 points or 2.21 percent to 2,663.10.
Mining and oil rose 263.92 points or 1.73 percent to 15,548.21 while holding firms added 63.43 points or 1.04 percent to 6,145.82. Financials advanced 14.58 points or 0.91 percent to 1,617.41, while industrial firms gained 54.74 points or 0.54 percent 10,120.91.
Trade volume was 1.5 billion shares valued at P8.7 billion, with advancers nearly double the number of decliners, 123 to 54.
Among the top gainers on Monday were Philippine Long Distance Telephone Co., up 3.57 percent at P2,900 per share; SM Prime Holdings, Inc., up 3.88 percent at P16.62; Metropolitan Bank and Trust Co., up 3.24 percent at P86.10; Metro Pacific Investments Corp., up 2.17 percent at P5.19; and Travellers International Hotel Group Inc., up 3.83 percent at P9.48.