PSEi sets record for 8th time this year

MANILA, Philippines - The Philippine Stock Exchange  index (PSEi) surged yesterday, posting a fresh all-time high for the eighth time this year as investors gobbled up stocks following a Wall Street rally overnight.

The PSEi, the benchmark of the local stock market’s performance, surged 1.10 percent, or 67.03 points, to settle at 6,139.21. It eclipsed the 6,093.90 recorded just last Monday.

The broader all shares index rose 0.86 percent or 32.94 points to 3,862.41.

“Most investors took directions from Wall Street’s overnight ascent,” said Freya Natividad, investment analyst at brokerage firm 2Trade-Asia.com.

Strong reports on housing starts and jobs released late Thursday in the US sent Wall Street higher, despite disappointing earnings from Bank of America and Citigroup.

The Dow Jones industrial average added 0.63 percent or 84.79 points to 13,596.02 while the broader Standard & Poor’s 500 index climbed 0.56 percent or 8.31 points to 1,480.94.

“Pluses also came from the better than expected gross domestic product growth of China in the fourth quarter of 2012,” Natividad said.

China’s economy grew 7.9 percent in the fourth quarter of 2012, up from the previous quarter’s 7.4 percent. Stronger quarterly growth was widely expected after earlier data showed retail sales, factory output and other indicators rising.

China’s economy picked up to 7.9 percent in the fourth quarter, beating analyst estimates, as exports and industrial output recovered.

In the local market, all subinidices were in the green, led by service firms that rallied 2.29 percent or 41.44 points to 1,854.05.

Advancers outpaced decliners, 103 to 60, while 48 stocks did not change. Value of traded shares jumped to P9.337 billion from P7.32 billion a day ago.

Prices of most active shares rose, led by top-traded and index heavyweight Philippine Long Distance Telephone Co. that rallied 3.17 percent or P86 to P2,800.

Other major markets in Asia were also up  after signs that the US economic recovery is gaining traction and a rebound in China’s growth emboldened investors to plunge back into equities.

Japan’s Nikkei 225 soared 2.5 percent to 10,875.16, recouping all of Thursday’s losses and more as the yen slipped against the dollar. 

Hong Kong’s Hang Seng rose 0.8 percent to 23,514.10. South Korea’s Kospi added 0.3 percent to 1,980.79. Australia’s S&P/ASX 200 rose 0.3 percent to 4,771.50. Benchmarks in Singapore, Taiwan, Indonesia and mainland China rose. Malaysia and New Zealand fell.

Investors became more optimistic Thursday after the US Commerce Department issued a strong report on housing starts for December. Builders broke ground on houses and apartments at a seasonally adjusted annual rate of 954,000 — more than 12 percent higher than November.

Unemployment figures were a further sign of economic recovery. The US government said the number of Americans seeking unemployment aid plummeted to a five-year low last week.

“US economic data continued to show steady and gradual growth, and that gave a fresh boost to market sentiment,” said Gary Yau of Credit Agricole in a market commentary.—With AP