Stocks extend rally, end at new peak

MANILA, Philippines - Strong fund inflows and the winning stretch in Wall St. extended the local stock index’s rally yesterday, posting a third consecutive all-time high, the 19th for this year.

Persistent buying will continue amid overbought levels, which will allow the bellwether index to surge to 7,400 by yearend, COL Financial Group Inc. said.

The benchmark Philippine Stock Exchange index (PSEi) climbed anew yesterday, gaining 0.42 percent or 27.85 points to end at a fresh 6,648.57 record. The main index traded at a new intraday high of 6,690 in morning trading.

The broader All Shares index inched up 0.10 percent or 4.16 points to 4,145.45.

“We are still quite bullish. [There is] continuing inflows in market caused by low interest rates,” said Juanis Barredo, chief technical analyst at COL Financial.

“The sustainability factor is clearly transparent and you would probably see more broad movements in the market rather than isolated movements.”

The local stock market, which benefits from low interest rates, strong macroeconomic growth and robust corporate earnings, has encouraged more investors to continue the buying spree.

“The Philippine equity market seems impervious to corrections as investors focus on a formidable macro backdrop while robust foreign fund inflows provide for further strength,” First Metro Investment Corp. and University of Asia and the Pacific said in the monthly publication The Market Call.