The stock market hit new record highs on Thursday with analysts noting continued investor confidence ahead of the end of the so-called “ghost” month.
The Philippine Stock Exchange index (PSEi) gained 1.13 percent and broke past the 8,100 resistance level to close at 8,144.91, a new all-time high. The previous record of 8,127.48 was set more than two years ago on April 10, 2015.
The PSEi also hit a fresh intraday high of 8,169.64, surpassing the previous record of 8,136.97 posted on April 7, 2015.
The broader All Shares rose 0.83 percent or 29.56 points to finish at 4,815.91.
“I think it’s … more of, really, an easing of concerns” including that of war on the Korean peninsula, Philstocks senior research analyst Justino Calaycay Jr. said.
“[T]he economy is doing good, although earnings have not been able to pick up yet, and probably, [there are]expectations of an infrastructure push by the government,” he added.
“So in light of these things, I think there is no reason for investors not to be confident.”
PSE President and CEO Ramon Monzon said the stock market’s surge underpinned investor confidence in the Philippine market and the economy.
“The Philippines remains a favorite among emerging markets as it continues to provide attractive returns,” he claimed.
Regina Capital Development Corp. President Marita Limlingan said foreign funds were coming back as evident by higher volumes and the looming end to ghost month.
Business activities are said to slow down during ghost month, which this year runs from August 22 to September 19 based on the Chinese calendar, as investors postpone purchases and other financial activities.
The PSEi’s rise bucked declines in other markets that reacted to disappointing news on China’s factory output, retail sales and state investments.
The Nikkei was down 0.3 percent, as were the Hang Seng and Shanghai Composite that both fell by 0.4 percent.
In Manila, all sectoral indices gained with property leading with a 1.79 percent rally.
More than 1.2 billion issues valued at P8.4 billion were traded.
Winners led losers, 111 to 85, while 62 issues remained unchanged.