Stock Market


PSEi holds above 8,000 to hit 25th all-time high




Posted on April 07, 2015


SHARES advanced for the seventh straight session yesterday to push the main index above the 8,000 level and finish at its 25th all-time high this year on “pent-up demand” and expectations of a continued low interest rate environment, analysts said.

The benchmark Philippine Stock Exchange index (PSEi) rose to as high as 8,062.79 during the day and sustained its momentum to close at 8,053.74 -- up by 60.65 points or 0.76% from Wednesday’s close.

These eclipsed the previous intraday high of 8,007.98 hit on March 30 and the record finish of 7,993.09 on April 1.

The all-shares index also gained 30.87 points or 0.67% to settle at 4,607.08.

“Investors remain positive, there was a little bit of consolidation, especially after the (US Federal Reserve) hinted of a further delay in rate increases as a result of last Friday’s dismal jobs report,” Astro C. del Castillo, managing director of First Grade Finance, Inc., said by a phone.

The US Labor Department said nonfarm payrolls went up by 126,000 last month -- the smallest gain since December 2013, Reuters reported on Friday.

The disappointing result led investors to pare bets the Fed would hike interest rates anytime soon.

“The market was pulled up by heavyweights TEL (Philippine Long Distance Telephone Co. or PLDT) and SM [Investments Corp.],” Anton G. Alfonso, research analyst at RCBC Securities, Inc., said via text yesterday.

Shares in PLDT surged by P88 or 3.10% to close at P2,928 apiece; while those of SM gained P19 or 2.10% to P924 each.

Other actively traded stocks were those of conglomerate Ayala Corp., Metropolitan Bank & Trust Co., Universal Robina Corp., and BDO Unibank, Inc.

Mr. Alfonso also cited “pent-up demand from the long holiday weekend.” Philippine financial markets were closed last Thursday and Friday in observance of Holy Week.

Five out of six domestic subindices rallied. Services jumped by 35.49 points or 1.68% to 2,146.30; mining and oil soared by 210.94 points or 1.37% to 15,553.67; holding firms jumped by 70.59 points or 0.99% to 7,175.72; industrials climbed 38.12 points or 0.30% to 12,844.38; and property edged up by 5.52 points or 0.17% to 3,251.03.

In contrast, the financials counter slipped by 0.76 point or 0.04% to close at 1,876.31.

Monday’s net foreign buying shrank to P494.59 million from Wednesday’s P517.89 million.

Still, gainers buried losers, 92-81, while 47 issues did not move. A total of 2.34 billion shares worth P6.55 billion changed hands -- a decline from Wednesday’s value turnover of P7.72 billion.

“Looking forward, there is still momentum but profit taking is already inevitable this week,” First Grade’s Mr. del Castillo said.

He added that the PSEi’s psychological resistance is 8,100, while support is at 8,000.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld.