Stocks scale new record peak

MANILA, Philippines — Emerging from a two-day break, the Philippine Stock Exchange index (PSEi) scaled a new record peak due to a confluence of positive developments.

The benchmark index rallied 150.76 points to close for the first time ever above the 8,500 mark at 8,516.02.

Likewise, the broader All Shares index was also on a roll, closing 65.04 points higher, or 1.33 percent, at 65.04 points.

The rest of the counters were likewise on a strong position except for the mining and oil, which traders said was due to the fact that mining investors are still waiting for the third quarter earnings results of many companies.

Astro del Castillo, managing director at First Grade Finance Inc., said market investors are catching up with the uptick in some Asian stocks after emerging from a two-day holiday.

Total value turnover, amounting to P9.5 billion, reflected a market that was very eager to take a bet on positive developments within and outside the country, traders said.

Market breadth was positive, 116 to 79 while 47 issues were left unchanged.

Zoren Musngi, research analyst at Mandarin Securities, said market optimism on third quarter earnings results also provided the much needed boost.

Musngi said the PSEi may end at 8,700 level this year, judging by the earnings results.

Analysts said market investors would closely monitor the nomination of the next US Fed chair to assess future monetary policy.

Shares of listed gaming company PhilWeb surged 14.38 percent yesterday to finish at P8.99 apiece on news that Philippine Amusement and Gaming Corp. has issued the company a Certificate of Accreditation.

The third party audit service or Electronic Management Gaming System (EMGS) provider – which is still in the process of procurement – will oversee the compliance of all gaming service providers. More importantly, the EGMS will ensure the veracity of information provided by licensees and operators with regard to player registrations, player account controls, player funds, reporting, audit, among others.

Pagcor said that once the gaming regulator has procured the third party audit service provider for electronic games or Electronic Management Gaming System (EMGS) provider, PhilWeb can be issued a notice to proceed.

Asian shares inched higher yesterday after the US Federal Reserve said economic growth was solid, virtually cementing the case for a December rate rise even as investors braced for what is expected to be the Bank of England’s first hike in more than 10 years.

Investors were wary as they awaited the nomination of the next head of the US central bank, as well as a tax bill from squabbling Republicans in the US House of Representatives. Both were expected later in the session.

MSCI’s broadest index of Asia-Pacific shares outside Japan was nearly flat in late afternoon trade, after earlier climbing to its highest levels since November 2007.

Australian shares touched a two-and-a-half year high in early trade but reversed gains to close down 0.1 percent.

China’s blue-chip CSI300 index was down 0.2 percent, while the Shanghai Composite Index shed 0.4 percent.  – With Reuters