Stock market pierces 5,500-point level

MANILA, Philippines - The local stock market continued its upward momentum, surging past the 5,500 level to close at a fresh all time high amid firmer US housing data and hopes of a US budget deal to avoid going over a “fiscal cliff.”

The main benchmark index, PSEi, rose for the second consecutive day yesterday to close 51.03 points or 0.94 percent higher at 5,500.58 with all indices except services posting gains, largely due to the recovery of the US market which started last Friday.

“This was in response to the knee jerk development in the US last night, encouraging investors to load up on equities,” said Astro Del Castillo of First Grade Securities.

Investors amassed banking stocks Philippine National Bank, which increased by 11.69 percent to P84.10; Metrobank (1.06 percent at P95) and Banco De Oro (0.29 percent at P68.30).

A total of 5.76 billion shares valued at P6.83 billion changed hands yesterday.   Gainers edged out decliners 89 to 76.

On the corporate front, taipan John Gokongwei’s JG Summit Holdings Inc. gained 5.25 percent to P37.10  largely on speculations it would get the gaming license of Japanese billionaire Kazuo Okada to operate a $1-billion casino at the Entertainment City, which the Philippine Amusement & Gaming Corp. hopes to turn into Asia’s Las Legas-style casino and tourism complex along Roxas Boulevard.

Robinsons Land Corp. a unit of JG Summit, remains in talks with Okada’s Tiger Resorts Leisure and Entertainment Inc. for a possible joint venture.

US home sales rose 2.1 percent  while home builders confidence index hit a six-year high at 46 in November, up from 41 in October.

“The pair of stronger-than-expected report suggests that recovery in US housing market is gaining traction. On the local side, we expect the domestic market to continue its upward momentum following Wall Street’s 200-point gain overnight,” said Ghia Paula Yuson of First Metro Securities Brokerage Corp.