Market climbs to 13th record close this year

MANILA, Philippines - The Philippine Stock Exchange index (PSEi) pierced the 7,800  level for the first time to set another record high as investors started to take positions ahead of the release of fourth quarter earnings.

The PSEi rallied by 10.05 points or 0.1 percent to end at its best finish ever of 7,803.45. This marked the PSEi’s  13th record closing so far in 2015.

“We are optimistic that emerging markets like the Philippines will remain resilient amidst uncertainties in the euro zone. On the local front, we expect corporate profits and dividend stories to continue to lift the market,” said PSE President and CEO Hans B. Sicat.

The gains were led by industrial sector, which surged 26.4 percent followed by the property index  (15.16 percent higher) and the holding firms (14.03 percent).  The financials and mining and oil sectors were in the red.

Value turnover for the day amounted to P7.58 billion   with the decliners beating advancers 95-93 while 41 stocks were unchanged.

Among the actively traded stocks were Ayala Land, which closed at P35.60, SM Prime (P19.94), PLDT (P3,190), Universal Robina (P217.40), and Metro Pacific Investments Corp. (P4.98).

Top gainers include IMI, Oriental Petroleum, Discovery World, ATN Holdings and Lorenzo Shipping.

The PSE has  gained 7.9 percent so far this year.

Analysts said investor optimism was also due to expectations Greece may resolve its problems with its creditors especially with the European Central Bank announcing it won’t cut off emerging funding for Greek banks.

Greece is expected to request for up to a six month loan extension from its creditors.

Accord Capital Equities Inc.’s Jun Calaycay said it remains to be seen whether the market could sustain its bullish momentum, noting that the PSEi  is in ultra-high territory from a historical perspective.

Calaycay noted that value turnover averages have dropped to P8.34 billion from levels above P10 billion just last week.

“These numbers leave little doubts that the market remains in the hand of the bulls but it equally suggests the bears are making their presence felt,” Calaycay said.