Stocks breach 7,100-mark

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The Philippine Stock Exchange index (PSEi) finally breached the 7,100-point barrier on Friday, finishing the week on a strong note ahead of the long weekend.

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Monday has been declared a holiday for the observance of National Heroes Day.

The benchmark stock index rose 0.52 percent or 36.60 points to close at 7,133.09 after hitting an intraday high of 7,141.17, while the wider All Shares index closed up 0.41 percent or 17.06 points at 4,217.55.

This was the fourth time the PSEi reached an all-time high this year, topping the 7,096.49 close on Wednesday, August 20.

Justino Calaycay Jr. of Accord Capital Equities Corp. said that the Friday advance was triggered by the US market rally overnight.

“The PSEi rose for the fourth straight day, breaching and closing above the 7,100 line for the first time since May 29 last year, driven by the record-setting performance of US stocks overnight. Asian markets were likewise higher for the same reason,” Calaycay said.

The Dow Jones Industrial Average gained 60.36 points, while the S&P 500 added 5.86 points and the Nasdaq registered a 5.62-point increase.

Calaycay said that the market mostly followed the overseas market, having its optimistic surges throughout the week, showing signs of “confidence in the market.”

Among the sectoral counters only mining and oil registered a decline on Friday, making a 0.71 percent dip or 125.39 points to close at 17,245.92. Financials were up 0.10 percent or 1.60 points at 1,647.59; industrials increased 0.27 percent or 29.55 points to 10,982.76; holding firms rose 0.99 percent or 61.56 points to 6,279.85; services advanced 0.72 percent or 15.83 points to close at 2,218.96; and property was up 0.05 percent or 1.30 points at 2,695.22.

The most actively traded stocks were divided equally in the red and green. Among the gainers were Alliance Global Group Inc., up 3.09 percent or P0.75 at P25 per share; Ayala Corp., up 0.35 percent or P2.50 at P725 each; and Globe Telecom Inc., gaining 3.19 percent or P62 to close at P2,008.

Losers included PLDT, down 0.06 percent or P2 to P3,300; Ayala Land Inc., off 1.05 percent or P0.35 at P33; and BDO Unibank falling 0.38 percent or P0.35 to P91.15 per share.

Gainers outpaced losers, 83 to 79, with 66 issues unchanged. Total volume was at 1.176 billion shares, while value turnover was at P10.861 billion.

Calaycay said that though the general view on the market remains positive, it “remains to be justified” as a pause in the market due to the extended weekend ahead of the National Heroes’ Day celebration on Monday will “present some degree of risks.”

But he also noted the market is approaching the end of the August “Ghost Month,” which may bring some buying into the local equities.

Jason Escartin of F. Yap Securities Inc. agreed, noting the current positive sentiment on Wall Street, as well as local optimism looking forward to companies’ second half earnings prospects.

“Immediate support is 7,080, [while]resistance is 7,130 to 7,140,” he said.

On Wednesday, the PSEi gained 13.74 points or 0.19 percent to 7,096.49, while the broader All Shares index was up 2.86 points or 0.07 percent at 4,200.49. Trading was suspended on Thursday in observance of the death anniversary of Ninoy Aquino.

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