The Philippine stock market rebounded from a two-day decline and hit a new intraday high of 7,531.94 points on positive economic leads before closing with more modest gains.
After reacting negatively to the International Monetary Fund (IMF)’s downward revision to its global and ASEAN 5 economic outlook, investors shifted focus on to US President Barrack Obama’s “defiant” and “feisty” State-of-the-Union address and the Bank of Japan’s announcement affirming its stimulus plan for the country’s economy.
The local market aligned itself with the upbeat tempo of Asian and global trade, which cheered Obama’s line: “The US economy is growing at its fastest pace since 1999 . . . At this moment—with a growing economy, shrinking deficits, bustling industry, and booming energy production—we have risen from recession freer to write our own future than any other nation on Earth,” he said.
Justino Calaycay Jr. of Accord Capital Equities Corp. said that investors are also likely to anticipate the release in February and March of fourth-quarter and full-year 2014 corporate earnings.
“By then, we will have a more solid basis to judge whether the index levels and individual securities prices are justified,” Calaycay said, adding that with the new intraday high, the market is likely to face a correction anytime soon.
The bellwether Philippine Stock Exchange index (PSEi) gained 0.29 percent or 21.29 points to finish Wednesday’s trade at 7,474.10, while the All Shares inched up 0.05 percent or 1.99 points to 4,368.12.
The new intraday high broke the previous record of 7,350.41 points, hit on January 14. The Services and Mining and Oil subindices were down, but the four others advanced, led by Property with a 0.50 percent gain.
Among the most active, Metropolitan Bank and Trust Company posted the biggest rise of 2.42 percent. Other top gainers were PLDT, Ayala Land Inc. and First Gen Corp., while the biggest losers included Energy Development Corp., Universal Robina Corp. and SSI Group Inc.
Decliners outnumbered advancers 98 to 76, while 54 issues closed steady. Shares traded totaled 5.12 billion, valued at P8.53 billion.
On Tuesday, the benchmark stock index ended down 0.43 percent or 32.51 points at 7,452.81, while the wider All Shares dropped 0.42 percent or 18.48 points to 4,366.13.