Philippine Stock Exchange : PSEi breaches 8,000 level on US, PHL good news

Local share prices breached the 8,000 level for the first time this year on positive sentiment overseas and on the domestic front.

The benchmark Philippine Stock Exchange index (PSEi) surged 73.92 points or 0.93 percent to 8,030.06 from Thursday's 7,956.14 finish.

Friday's closing is slightly lower than the record high level of 8,127 achieved in April last year.

'While Asian markets, including ourselves, benefitted from positive news abroad, moving past the 8,000 level shows that investor confidence in our market remains high, and provides some early momentum as companies prepare to disclose their mid-year earnings results in the coming weeks," PSE President and Chief Executive Officer Hans B. Sicat said.

Astro del Castillo, managing director at First Grade Finance Inc., said the United States (US) stock market trading at record highs gave a boost to local equities.

'Economic worries (over the impact of) Brexit (British exit vote) is somewhat abating. This boost local confidence,' he said in an interview.

At home, del Castillo said an array of good news such as the country's arbitration win against China over West Philippine Sea issue and new programs of Duterte administration also enhanced investors' confidence in local stocks.

For his part, Jonathan Ravelas, chief strategist at Banco de Oro Unibank, said expectations of better second-quarter earnings kept investors on the upbeat.

'Today's close above 8,000 signals the market has still some gas to try 8,136 levels. However, note that market valuations are quite expensive and may limit markets rally,' he said.

All counters ended in the positive territory, with the rally led by services that advanced 1.73 percent.

Volume of transactions reached 4.16 billion shares valued at Php11.13 billion.

Advancers dominated decliners, 111 to 80, while 43 issues unchanged.

Source: 4 Traders

Leave a Reply