By Arra B. Francia
THE PHILIPPINE Stock Exchange index (PSEi) rocketed to another record high on Monday, stopping less than six points short of the 8,300 mark as investors continued to ride optimism over the economy’s growth prospects and strength of the bourse’s counterparts abroad.
The 30-member bellwether index closed at 8,294.14 on Monday, climbing 1.38% or 113.29 points from last Friday’s 8,180.85 record finish. PSEi has been on a roll since first hitting this year on Thursday last week another historic high at 8,144.91.
Before that, PSEi had last notched an all-time high on April 10, 2015, closing at 8,127.48.
The broader all-shares index likewise rallied 1.03% or 50.15 points to end 4,886.48 yesterday.
Year to date, the PSEi has gained 21.2%.
“The PSEi’s ascent was mostly in-step with gains in Wall Street and other Asian markets,” PSE President and Chief Executive Officer Ramon S. Monzon said in a statement.
PNB Securities, Inc. President Manuel Antonio G. Lisbona said in a mobile phone message: “The move today is evidence of the very bullish sentiment among market investors.”
“The economic environment is widely expected to be conducive to growth, hence investors are taking positions aggressively,” Mr. Lisbona noted.
COL Financial Group, Inc. Chief Technical Analyst Juanis G. Barredo noted that the PSEi’s upward trajectory signals opportunity for the market to align itself with the movement of peers abroad. “I think the PSEi consolidated long enough and needed to align with other solid market movements abroad. US (United States) and many in Asia have had good upswings and we had to have our turn,” Mr. Barredo said.
IB Gimenez Securities, Inc. Head of Research Joylin F. Telagen also noted that PSE’s climb has been fueled by the performance of its peers.
“ (Investors) are hopeful that interest rate rises will be gradual, ahead of the Fed meeting this week,” Ms. Telagen said, referring to the US Federal Open Market Committee’s Sept. 19-20 meeting.
Wall Street itself hit fresh record highs last week, while Hong Kong’s Hang Seng Index, the Shanghai-Shenzhen CSI 300 Index and the S&P/ASX 200 Index yesterday added 1.27%, 0.31% and 0.45%, respectively.
RCBC Securities, Inc.’s Jeffrey Lucero said: “We are looking at 8,350 in the next few days to weeks as the next resistance,” while IB Gimenez’s Ms. Telagen gave a 8,400-8,500 range, with support seen at 8,000.
Asked on possible risks investors should watch out for, COL Financial’s Mr. Barredo replied: “I think we zigzag upwards — may have a few pit stops as few headwinds still show like rates, North Korea and some local issues.”