Market soars, crosses another barrier

MANILA, Philippines - Stocks stormed past the 6,400-barrier to close at its 14th  record high for the year at 6,435.98 yesterday, taking the cue from a rally in Wall St. the better-than expected Philippine economic growth figures, and the numerous successful run-ups since the start of the year.

The bellwether Philippine Stock Exchange index (PSEi) soared 1.86 percent or 117.37 points from Friday’s close of 6,318.61, its peak for the year.

A total of P11.18 billion changed hands as some 3.13 billion shares were traded, data from the Philippine Stock Exchange showed.

The broader All-Shares index closed at 4,040.92, higher by 63.85 points from Friday’s close.

By sector, all indices were in the green – financials, industrial, holding firms, services, mining and oil and property were up in both morning and afternoon trade.

Last week, the National Economic and Development Authority (NEDA) reported that the economy grew 6.6 percent last year, surpassing the five to six percent official target range for 2012.

Analysts said strong inflows and investor expectations of strong corporate earnings for 2012 also boosted the local equities market.

“Continuous influx of new money is driving the market higher,” said Joseph Roxas, president of Eagle Equities Inc.

During morning trade, investors were already snapping up stocks, closing at a high of 6,446.86, after hitting an intraday peak of 6,448.52.

Yesterday’s market behavior was also influenced by developments abroad including news from the US.

The US Federal Reserve had announced that it would continue its $85-billion monthly asset purchases as a stimulus program.

Furthermore, the Fed also maintained interest rates at near zero to help spur bank lending, support corporate expansion and ultimately, boost consumer spending.

On Friday, Wall St. climbed anew on the back of optimism about jobs following the latest US jobs data, indicating a recovery in spending and firms’ expansion.

According to the US Labor Department, jobs in the US grew at an average of 181,000 a month last year, higher than a previous estimate of only 153,000, indicating economic recovery.

The Dow Jones Industrial Average, meanwhile rallied 1.08 percent or 149.21 points to 14,009.79 on Friday, closing north of the 14,000 mark for the first time in more than five years.

Furthermore, the broader Standard & Poor’s 500 Index advanced 1.01 percent or 15.06 points to 1,513.17.

Analysts said investors’ optimism is also driven by strong corporate earning expectations for last year and prospects for sustaining growth this year as the government targets a higher gross domestic product (GDP) growth of six to seven percent.