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PSEi breaks 7,200-mark

Philippine shares have further defied threats of correction and have broken the 7,200-crucial mark for the first time this year amid string of good news both coming from the local and international scenes.

Philippine Stock Exchange index (PSEi) headed to its 15-month high, adding 99.46 points, or 1.40 percent to 7,206.02, while the wider all shares went up by 44.17 points, or 1.05 percent to 4,252.99.

As early as 11:30 am of Wednesday trade, the index was already trading at 7,201.99, 95.43-points higher, or 1.34 percent.

Market participation turned even more active with 2.9 billion shares traded at a value of P11.3 billion. Advancers, 105, beat decliners, 69, again, while 58 issues were unchanged.

First Grade Finance Inc. managing director Astro Del Castillo said in a phone interview that the market was up because of “string of good news”.

He mentioned that reports coming from Moody’s Analytics and the recent investment upgrade coming from a Korean rating agency have significantly driven the market during mid-week trade.

On Tuesday, the Philippines has secured another investment grade status, this time from Korean rating agency National Information and Credit Evaluation (NICE) Ratings, Inc.

In another development, Moody’s Analytics said in a recent report that Southeast Asian economies including the Philippines are poised to grow by 4.3 percent this year and above five percent next year.

“We’ve been waiting for a correction but the momentum is really there,” Del Castillo further said.

For his part, Summit Securities, Inc. president Harry Liu said the market will now target 7,400-level.

“We are still on the momentum. There have been no negative signs that may cause the market to correct and positive signs in economic improvement are there,” Liu further said, adding that the market could keep the positive momentum at least for this week.

All the sectors also made it on the green side with services having the largest gain, rising by 37.98 points, or 1.72 percent to 2,252.44, next to industrial, which went up by 193.30 points, or 1.76 percent to 11,147.67.

Next to them are property counter, which was up by 40.26 points, or 1.49 percent to 2,737.79, and financials which climbed by 17.47 point, or 1.07 percent to 1,650.38. Mining and oil, on the other hand, recovered with 133.76 points, or 0.76 percent to 17,738.97, while holding firms improved 41.47 points, or 0.66 percent to end at 6,303.14.

The top gainers on Wednesday were Universal Robina Corp., Ayala Land, Inc., Philippine Long Distance Telephone Co., Jollibee Foods, Corp., Bloomberry Resorts Corp., Aboitiz Power Corp.

On Tuesday, the local stock market went back to 7,100 after two days of idling below it with minimal gains.