Index breaks out to test new highs

MANILA, Philippines -  Share prices rallied yesterday with the benchmark Philippine Stock Exchange index breaching the 7,500 level on rosy economic prospects, analysts said.

Lexter Azurin, head of Research at Unicapital said the market has finally broken out of its three month consolidation and is poised to test new highs.

The main composite index rallied 137.72 points to close at 7,584.21.

The broader All Shares index likewise gained 51.21 points, or 1.14 percent, to close at 4,511.77.

All other indices likewise closed in positive territory with majority of the counters booking significant gains.

Among yesterday’s strongest counters were the property index, which gained 2.82 percent, the financials, which rose 2.07 percent, the industrial index which went up 1.36 percent and the holding firms which rose 1.04 percent.

Total value turnover reached P10.77 billion as investors enthusiastically returned to the market. Foreign investors were the net buyers in the PSE amounting to P1.25 billion.

Advancing stocks outpaced decliners, 111 to 75 while 48 issues were left unchanged.

Traders said yesterday’s rally was a follow through of Tuesday’s session, buoyed by optimism that the  first quarter gross domestic product (GDP) grew at least seven percent which if true, would affirm the Duterte administration’s economic policies.