THE Philippine Stock Exchange Index was headed toward 7,000 points on Tuesday on active buying following the release of positive corporate earnings results, but the benchmark index eased back after touching a high of 6,998.22.
Aside from the upbeat earnings, investors were also heartened by sustained gains on Wall Street as geopolitical tensions eased in Ukraine.
Analysts said that while the local market failed to hit the psychologically important 7,000-point mark in Tuesday’s trade, they believe it is “possible” for the index to breach the level within the week.
Harry Liu, president of Summit Securities Inc., said Tuesday’s trade ended with 0.39-percent gain due to positive first-half corporate results and good news in the local and international markets.
“This is due to good news, some six-month corporate performances, also the positive US markets. There is momentum because earnings are generally better than last year,” Liu said.
Liu expects the index to move within the 6,750-7,000 band this week, possibly reaching 7,000 on the “aggressiveness” of the market.
Asked if he thinks the market would go further up once it breaks 7,000-level toward the end August when the “Ghost Month” is over, Liu said the “Ghost Month” effect is just “psychological” and does not have much impact on local stocks.
“If the environment is good the market will go up. The Ghost Month is not the one raking it up. The indication is the six-month results, developments in the international markets and good news as catalysts,” Liu said.
“This year we should break 7,000. It is possible this week. We should anticipate better and stronger momentum next year on the continued infra projects, election spending and government and private sector activities,” he added.
The Philippine Stock Exchange index (PSEi) closed up 26.83 points or 0.39 percent at 6,983.49, while wider All Shares index went up 11.64 points or 0.28 percent to 4,175.32.
Financials were up 0.10 percent at 1,647.44 and industrials up 0.32 percent at 10,646.23.
Holding firms advanced 10.88 points or 0.17 percent to 6,254.26 and services rose14.66 points or 0.69 percent to 2,135.18.
Mining and oil gained 89.58 points or 0.51 percent to 17,540.48 and property added 26.08 points or 1 percent to 2,639.78
Advancers narrowly outnumbered decliners 88 to 87, while 56 stocks were unchanged. Volume traded was 1.124 billion shares worth P6.170 billion.
On Monday, the PSEi rose 1.11 percent or 76.32 points to end at 6,956.66, while the All Shares was up 0.84 percent or 34.58 points at 4,163.68.