Index hits new all-time high

MANILA, Philippines - Local stocks continued their winning ways with the main composite index rising to a new record high yesterday despite a bomb scare at the exchange.

The Philippine Stock Exchange index (PSEi) rose 57.21 points or 1.35 percent to close at 4,249.17, powered by the Aboitiz Group and the Manuel V. Pangilinan-led companies.

More than 1.28 billion shares worth P3.94 billion changed hands. Advances led decliners 78 to 44 while 39 issues closed unchanged from Wednesday’s close.

The market rally overshadowed the tension that gripped the PSE’s trading floor in Makati after one of the exchange’s employees received bomb threat from an anonymous caller.

The bomb threat, which turned out to be a hoax, disrupted trading at the PSE for one-and-a-half hours and resumed only after the Makati bomb squad checked the premises and declared the area safe, allowing traders and employees to return to the trading floor and their offices.

Trading resumed at 1 p.m. and closed at 2 p.m.

“The market’s advance today (yesterday) was partially affected by the strong results in the US markets last night. Upbeat words reported from the Fed’s Beige book spoke of a slowly improving economy and a far from gloomy outlook for the US. In fact, Fed reported that there are growth in other areas while inflation remains low. This encouraged investors and lifted the US markets higher,” Maria Arlysa Narciso said.

“The local index’s performance was a fresh break from its negative trending movement. However, we have yet to see whether such positive outcome can be replicated tomorrow or if the index can break out of its consolidation range,” Narciso added.

“The real test of its impact, if any, will be felt in the week-ending trades. Absent the unquantifiable influence on the investors’ psyche of the bomb threat, which we nevertheless believe to be minimal, we are inclined to believe a further advance to a new high to close the week,” said Accord Capital Equities Inc.’s Jun Calaycay.

Calaycay said the listing of Cebu Pacific scheduled next Tuesday, will set the tone for the week. Support is seen at 4.200 with interim resistanceat 4,253.75, the all-time (intraday) high.

Meanwhile, Global stock markets were mixed on Wednesday, with European exchanges edging higher on earnings reports while most Asian shares slumped amid concern of an economic slowdown in China.

In London, the market took in stride the government’s unveiling of the harshest cuts for decades, including the slashing half a million public sector jobs, climbing 0.44 percent to close at 5,728.93 points.

In Paris, the CAC 40 rose 0.55 percent to 3,828.15 points while in Frankfurt the DAX gained 0.52 percent to finish at 6,524.55 points.

Elsewhere Milan climbed 0.91 percent and Amsterdam 0.17 percent. The market in Madrid was roughly stable as was the Swiss Market Exchange.

Wall Street was down at midday despite the announcement by a number of US companies of solid results, with investors there as in most markets waiting for the upcoming release of the US Federal Reseve’s Beige Book monthly assessment of economic trends.