Stocks flirt with 9,000 mark, end at new high

MANILA, Philippines - The local stock market sizzled anew yesterday, flirting with the 9,000 level as investors took their positions ahead of the full year and fourth quarter economic performance report, analysts said.

The benchmark Philippine Stock Exchange index (PSEi) recorded a new all-time high yesterday, closing 34.70 points higher at 8,950.62.

Similarly, the broader All Shares index gained 21.94 points, or 0.42 percent, to settle at 5,173.01.

Most sectoral indexes ended in positive territory except for the mining and oil and the financials index.

Total  value turnover reached P8.143 billion. Market breadth was negative, 128 to 99 in favor of decliners. Fifty-two issues, meanwhile, were left unchanged.

The local stock market has seen its seven straight day of foreign inflows at $8.8 million, the longest streak since August.

The market is seen breaching the 9,000 mark very soon but at the same time, analysts said, a market correction may also be in the offing.

Traders attributed the market index’s climb yesterday to optimism on the full year and fourth quarter economic performance which the government is set to release today.

“We saw several last minute positioning ahead of the GDP (gross domestic product) results today. Reports of a more positive growth last quarter from Moody’s and other analysts triggered the run up,” said Astro del Castillo, managing director at First Grade Finance Inc.

He said the market still has room to go up before a market correction can happen.

“We can expect the market’s momentum to continue toward the 9,000 level,” he said.

Luis Limlingan likewise said market investors positioned themselves ahead of the release of the latest economic performance.

 “Philippine markets bought up the index once more right before the release of fourth quarter GDP data, which will be out tomorrow,” Limlingan said.

Economists see a full year GDP hitting the government’s 6.5 percent to 7.5 percent target.

In its latest Market Call report released yesterday, First Metro Investment Corp. and the University of Asia and the Pacific said the economy likely performed well last year.

“Anchored on strong domestic macroeconomic indicators, we maintain our positive prospect over GDP growth in the fourth quarter which should hit our 6.5 percent to seven percent full year target. Inflation may pick-up pace in the first few months of 2018 amidst the tax reform, but should remain within the BSP target (albeit, at higher end),” the report said.

For 2018, the Philippines has a GDP target of seven to eight percent.