Local stocks surged 2.6 percent as the Philippine Stock Exchange index (PSEi) gained almost a hundred points, to close at a record high of 3,902.56 Thursday as foreign funds continued to pour in amid gains on Wall Street and the bullish domestic economic outlook.

The historical high at close recorded by the index was 3,873.50 on October 22, 2007. The all time high intra-day was also recorded on the same date at 3896.74. The index kept its steady advance for the eight consecutive day, gaining by as much as 9.7 percent. For the year, the index has gained 28 percent.

The peso also rose to two-year high.

"The US market's gain was again the trigger. Foreign funds continue to flow into the market," said CitisecOnline.com research head April Tan-Lee.

She noted that "earnings remain very strong and solidly on the way up. We're just a bit concerned about the pace of the market's advance."

The index kept its steady advance for the eight consecutive day, the longest streak since March 2009, gaining by as much as over 9.7 percent. Investors’ interest remained focused on banking shares and property stocks.

Interest rate-sensitive banks and property stocks led market rise; Metropolitan Bank & Trust Company rose 5.6 percent to P74, and Banco de Oro gained 3.6 percent to P60.

In the proeperty sector, SM Prime Holdings rose 9.66 percent to P12.26 while Ayala Land surged 7.97 percent near market close to 18.70, and Megaworld Corporation advanced 2.4 percent to P2.13.

Justino Calaycay Jr. of Accord Securities said “correction-watchers will have to wait another week to an already extended wait. The evidence was glaringly suggesting the bull.

He noted that value turnover have consistently risen, foreign funds have been flowing in and sentiments have remained positive even on days following huge overnight losses in the Dow. He raised his year-end index target to between 3,850 and 4,100.

JPMorgan Chase & Co. predicted the ”bright” earnings outlook will drive further gains while Tan sees the index hitting resistance at 4,200.