Closes at new high of 7,728.18
The Philippine Stock Exchange index (PSEi) finished at a new high on Friday as investors welcomed positive leads from the US markets and the strong earnings results from Universal Robina Corp (URC).
The bellwether stock index broke its recent record and settled 0.70 percent or 53.94 points higher at 7,728.18, while the wider All Shares index gained 0.58 percent or 25.75 points to 4,496.74.
The PSEi surpassed its previous closing high of 7,716.06, hit on Feb 4.
“We are pleased with the market’s movement in the last five weeks. The record numbers registered by the index highlight the level of investor confidence in our market. We hope that our initiatives to raise awareness about investing in the PSE among fund managers here and abroad will see more investment inflows into our market,” PSE President and Chief Executive Officer Hans B. Sicat said.
Miguel Agarao, investment analyst at Wealth Securities Inc., said overnight gains on Wall Street and the 12.5-percent increase in URC’s first fiscal quarter of 2015 profit helped push up the local market. URC’s results were also taken as a clue to a possible trend in the earnings of other companies during the same three-month period.
“Bullishness in the US helped all markets up today,” Agarao said. “Good earnings results from the URC also buoyed other consumer stocks as (the figures) could be a sign that earnings for other similar companies would still be strong. Positive sentiment created by this brought other index stocks higher.”
“The market continues to be strong but pullbacks are likely given the steep run-up in a short amount of time. For February, though, it may remain at elevated levels because of foreign buying,” he added.
Accord Capital Equities Corp’s Justino Calaycay Jr. views the market’s gain for the day being driven by a combination of such factors as Australia’s downward revision to its gross domestic product and inflation forecasts; the slowdown in the Philippines’ inflation in January to its slowest pace in 17 months at 2.3 percent; a mining bill filed in Congress and the positive performance of the US markets on Thursday.
The Dow Jones Industrial Average gained 211.86 points, while the S&P 500 added 21.01 points and Nasdaq advanced 48.39 points.
URC was the most active stock on the Philippine bourse with a gain on the back of its strong net income results. It ended with a 3.43-percent gain to P211.