MANILA, Philippines - Share prices continued to climb yesterday, with the benchmark composite index nearing the all-time high of 8,127.48 points recorded on April 10,2015.
Bucking bearish regional markets, the Philippine Stock Exchange index (PSEi) gained 25.69 points, or 0.31 percent, to finish at 8,071.47, the highest close since August 10, 2016 when the index settled at 8,051.40. It was also near the all-time high of 8,127.48 recorded on April 10, 2015.
Catherine Anne Cerdenia, business development associate at F. Yap Securities, said investors are more confident now after the index breached the 8,000 mark. “Investors are more optimistic now,” Cerdenia said.
She said there are reasons behind the market’s optimism including expectations the government’s tax reform package would hurdle Senate deliberations.
Cerdena also said the index may hit the 9,000 level this year if the government’s infrastructure program accelerates further. “It is really important for the market to see results,” Cerdenia said.
The Duterte administration has vowed to usher in the so-called golden age of infrastructure in the country, promising to increase infrastructure spending to seven percent of gross domestic product from five percent at present.
During yesterday’s session, volume turnover reached 1.1 billions shares valued at P6.42 billion. Foreign buying stood at P3.14 billion, eclipsingforeign buying at P2.50 billion.
Advancing stocks outpaced decliners, 119 to 88 while 42 issues were left unchanged.
Other indexes ended in positive territory except for the industrial and mining and oil indexes. The financials index was the biggest gainer, rising 0.68 percent.
Experts said if all goes well in the economy, the index would continue to soar even higher.
Commenting on the prevailing market behaviour, Peter Lundgreen, CEO of Lundgreen Capital, said he is upbeat on the economy.
“It is uncertain whether the Philippines becomes the world champion in GDP growth this year but I am convinced it will happen in 2018. The government will work hard to achieve the gold medal through major infrastructure investments combined with significant tax reforms,” he said.
He said the Bangko Sentral ng Pilipinas should raise its interest rates twice to counter potential overheating of the economy.