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PSE index closes above 7,100-mark

Fresh from a holiday break, the local market surged unexpectedly and closed above the 7,100-level yesterday for the first time this year as global jitters start to die down and major economies overseas are showing improvement.

The benchmark Philippine Stock Exchange index (PSEi) capped its fourth day rally to close at 7,133.09, up by 36.60 points or 0.52 percent, to register a 52-week high. The wider all-shares index increased by 17.06 points, or 0.41 percent to 4,217.55. Gainers topped decliners, 83-79, with 66 issues unchanged.

Trading volume was heavy. A total of 1.18 billion shares valued at P10.86 billion changed hands on heavy volume.

“Strong market performance follows international leads as geopolitical issues that hounded the market in the recent weeks continued to show improving signs,” Gab Aguila, analyst at DA Market Securities, Inc. said.

He explained that the easing crises have brought confidence back into world markets and have given investors a better idea on growth outlook as risk-off tensions settle.

As part of the leads coming abroad, AB Capital Securities, Inc. analyst Joyce Ramos said the market also mirrored the trend in the United States and other Asian Markets, which responded positively to the minutes released by the Federal Reserve meeting.

The next target for the market is pegged at 7,200-resistance level.

Except for mining and oil, which shed 125.39 points to end at 17,245.92, majority of the sectoral indices ended in the positive territory.

According to Ramos, the market movers for the market were JG Summit Holdings, Inc., Alliance Global Group, Inc., SM Investments, Inc., and Globe Telecom, Inc.

Ramos explained that the shares of Globe picked up because of the optimism brought about by the company’s listing of its P10-billion worth of non-voting preferred shares at the local bourse on Friday. Valued higher at P10.9 billion, the total volume of shares traded stood at 1.2 billion. Advancers still beat decliners, 83 to 79, while 66 were unchanged.

On Wednesday, before the trading closed for a holiday break on Thursday, the local stock market hit the crucial 7,100-threshold but capped the session a little below it as investors took profits.

Next week will be another shortened trading week as the capital market takes on another holiday break on Monday, August 25, to pave way for the celebration of National Heroes Day.