PSEi makes history, hits 7,000 mark

MANILA, Philippines - The Philippines's stock market surged to a historic level on Monday on the back of bullishness over the exports jump in Japan and expectations of further interest rate cuts.

The Philippine Stock Exchange index climbed 1.09 percent or 75.86 points to end the morning session at a new record-high at 7,032.96 while the broader all shares index added 0.88 percent or 38.28 points to 4,386.95.

"Buoyed up by a surge in Japanese stocks which in turn was driven by exporters' gains on a weaker yen, Philippine shares forayed further into uncharted territory, breaking past the 7,000-line minutes into the session," said Justino B. Calaycay, Jr., analyst at Accord Capital Equities Inc.

"The bulls are so confident of the fundamental prospects they have defied technical indications for an extended time, leaving bears limited time to dominate the market," Calaycay added.

Investors also expect more funds to flow to the stock market given the outlook that the Bangko Sentral ng Pilipinas might cut anew the interest rates for special deposit accounts.

Index heavyweights SM Investments Corp. (up 2.22 percent), LT Group Inc. (up 1.92 percent), Ayala Corp. (up 3.95 percent) and BDO Unibank Inc. (up 2.71 percent) led the rally in the morning trading.

On Friday, the benchmark index rose 0.95 percent or 65.67 points to end at its 26th record high for this year at 6,957.10, eclipsing the April 12’s finish at 6,891.43.