Market continues to climb, pierces 5,400

MANILA, Philippines - Philippine stocks rallied anew yesterday, breaching the 5,400-point barrier for the first time amid brighter growth prospects for the local economy and positive US economic data.

The main benchmark index or the PSEi surged 1.27 percent or 68.22 points to finish at 5,443.74 as investors scooped up stocks of SM Investments Corp. and Ayala Corp.

This is the third time the PSEi reached new all time-highs.

More than 6.3 billion shares worth some P8.33 billion changed hands yesterday. Gainers outperformed decliners 103 to 63 while 37 issues were unchanged.

PSE chairman Jose T. Pardo attributed the market’s strong performance to Asian Development Bank’s positive outlook for the economy this year.

“The upbeat outlook of the economy, including Athe Asian Development Bank’s assessment in its recent report, affirms confidence in the Philippine market, pushing the main index to yet another unprecedented level,” said PSE chairman Jose T. Pardo.

The ADB raised Wednesday its 2012 growth forecast for the country from 4.8 percent to 5.5 percent as it continued to show strength despite global and regional economic slowdown.

“We continue to benefit from stable macroeconomic fundamentals which have augured well for businesses in the country. Such growth expectations should further keep the Philippine stock market in the radar of global investors,” said Hans B. Sicat, PSE president and chief executive officer.

Accord Capital Equities Inc.’s Jun Calaycay said the market will continue “to be by-and-large headline driven with the third quarter earnings season coming up in the next two or three weeks.

“Europe (particularly Spain, Italy and Greece), the US, China, Japan and the Middle East will be battling for focus on investors’ crosshairs,” Calaycay said.

The main benchmark index or the Philippine Stock Exchange index (PSEi) surged 1.27 percent or 68.22 points to finish at 5,443.74 as investors scooped up stocks of SM Investments Corp. and Ayala Corp.

PSE chairman Jose T. Pardo attributed the market’s strong performance to Asian Development Bank’s positive outlook for the economy this year.

“The upbeat outlook of the economy, including the Asian Development Bank’s assessment in its recent report, affirms confidence in the Philippine market, pushing the main index to yet another unprecedented level,” said PSE chairman Jose T. Pardo.

The ADB raised Wednesday its 2012 growth forecast for the country from 4.8 percent to 5.5 percent as it continued to show strength despite global and regional economic slowdown.

“We continue to benefit from stable macroeconomic fundamentals which have augured well for businesses in the country. Such growth expectations should further keep the Philippine stock market in the radar of global investors,” said Hans B. Sicat, PSE president and chief executive officer.

Accord Capital Equities Inc.’s Jun Calaycay said the market will continue “to be by-and-large headline driven with the third quarter earnings season coming up in the next two or three weeks.

 “Europe (particularly Spain, Italy and Greece), the US, China, Japan and the Middle East will be battling for focus on investors’ crosshairs,” Calaycay said.

All sectoral indices enjoyed robust gains and closed in positive territory, led by holding firms that surged 108.40 points to 4,670.08. Industrial jumped   81.56 points to 8,312.17, while property increased   19.43 points to 2,086.49. Services added   8.43 points to 1,791.91, while mining and oil gained   10.34 points to 19,745.97. Financials edged higher by 0.02% or 0.30 point to 1,384.47.

Advances overwhelmed decliners 103 to 63, while 37 stocks were unchanged.

Among actively-traded stocks, SM Investments Corp. rose sharply by   P45.50 to P805.50, while Ayala Corp. grew by   P15.40 to P440.20. Manila Electric Co. went up   P7.80 to P281.80.

Across Asia, a pair of positive US economic reports helped prod Asian stock markets higher yesterday.

A report showed US service companies grew last month at the fastest pace in six months. A separate report said American companies engaged in a modest amount of hiring in September.

Those hints of improvement in the world’s biggest economy helped propel Japan’s Nikkei 225 index up 1.1 percent to 8,844.85. Australia’s S&P/ASX 200 gained 0.3 percent to 4,452.20. Benchmarks in India, the Philippines, Thailand and Indonesia also rose. New Zealand and Taiwan fell.

Hong Kong’s Hang Seng rose 0.2 percent to 20,929.27, continuing to benefit from the Chinese Communist Party’s long-overdue announcement on Friday that a party congress is scheduled for Nov. 8, when President Hu Jintao will step down as party boss and Vice President Xi Jinping will succeed him.

“It means political stability is enhanced in mainland China,” said Linus Yip, strategist at First Shanghai Securities in Hong Kong.

Japanese export shares soared on the prospect of a healing economy in the U.S. — a key market for Japanese goods including high-end vehicles. Toyota Motor Corp. jumped 3.8 percent and Nissan Motor Co. soared 4.8 percent. - with AP