Hits 27th closing peak this year
Philippine equities ended the week above the 8,100-point record level, driven by the advance in the US markets when local sentiment was already upbeat about the economy, without any strong negative leads to counter it.
The Philippine Stock Exchange index (PSEi) gained 0.93 percent or 74.79 points to close at an all-time high of 8,127.48.
It marks the 27th closing peak for the PSEi this year, breaking the previous record of 8,098.68 set on April 7. The index had seen 8,136.97, but intraday, also on April 7, and has kept the record.
The All Shares index on Friday was up 0.55 percent or 25.28 points at 4,635.38.
“The market is actually trading at new highs, and was brought up by very select stocks,” Nisha Alicer, analyst at DA Market Securities Inc., said in a phone interview.
Alicer described trading as supported by momentum buying of select stocks in an optimistic climate both locally and overseas. She warned, however, that prices may have reached levels vulnerable to a correction.
“Though staying in the positive, valuations look lofty already. We recommend profit-taking for the short term,” she said.
“But the positive growth story of the Philippines remains, and we still look at continued liquidity moving forward for the long term. For the short term, there may be concerns of lower liquidity and increased volatility due to the summer vacation [when people are away on holiday]and settlement of tuition fees, but that will result in a decline in prices, which may perk up the market once again to its positive long-term trend,” she added.
Out of the six sectoral indices, industrial as well as mining and oil ended down, while the rest advanced, led by the 1.70-percent gain posted by financials.
Among the actively traded, Universal Robina Corp. and GT Capital Holdings Inc. lost. The top advancers were Philippine Long Distance Telephone Company, Ayala Land Inc., SM Investments Corp., Metropolitan Bank and Trust Company, BDO Unibank Inc., Bloomberry Resorts Corp., Alliance Global Group Inc., and Bank of Philippine Islands.
Total volume stood at 1.5 billion shares, valued at P8.5 billion. Advances outnumbered decliners 101 to 85, while 45 issues closed unchanged.
On Wednesday, the last day of trade before the Day of Valor holiday closed the market on Thursday, the main index dropped 0.57 percent or 45.99 points to finish at 8,052.69. The All Shares index slipped 0.40 percent or 18.69 points to 4,610.10.