PHILIPPINE shares nearly hit the 8,000 level on the PSEi as the market cheered the centrists’ victory in the French presidential elections over the weekend, dousing fears another break off from the European Union should the nationalist won.
The PSEi was up 1.54 percent or 120.34 points to close at 7,962.33, while the broader All Shares gained 1.24 percent or 57.85 points to 4,731.25.
IB Gimenez Securities Inc. Research Head Joylin Telagen said a combination of positive news on the domestic and global fronts, including Emmanuel Macron’s victory in France helped boost investor sentiment.
“Investors are expecting a sustained gross domestic product growth for the year, strong corporate earnings. Globally though better than expected jobs report bolster optimism on improving economic growth, and after Emmanuel Macron won the French election,” Telagen said.
But the market should hit its resistance level soon, COL Financial Sales Vice President Juanis Barredo told The Manila Times.
“Market still shows some momentum given the strong swing we saw last week. Asian markets were quite helpful with some showing strong gains as well. But we are reaching overbought levels and we expect some corrections to show within a few days if this upswing remains too forceful,” he said.
All sub-indices were up, led by Property (+2.97 percent). Services rose by 1.83 percent, Mining and Oil advanced by 1.58 percent, Holding Firms went up 1.20 percent, Financials rose by 0.68 percent and Industrial gained 0.36 percent.
Summit Securities Inc. President Harry Liu believes the market is testing its technical resistance.
“It’s just pure technical movement, because there’s nothing in the global or local that created any crisis today except that France election. They have a new president and the global market would have to see. But other than that, from our local side … what triggers the technical are the fundamentals like infrastructure, tax reform, foreign investment. But you can see that a lot of movement, based on news, is forthcoming to the country,” he said.