PHL stocks hit 8th all-time high above 7,700 on bullish sentiment

By Leslie D. Venzon

MANILA, Feb. 4 (PNA) –- The stock market rallied to its eighth record close this year after reaching above 7,700 level on Wednesday, as investors bet on the country’s strong macroeconomic fundamentals and rosier outlook.

The bellwether Philippine Stock Exchange index (PSEi) advanced 102.91 points, or 1.35 percent, to 7,716.06 from previous day’s 7,613.15 close.

Summit Securities Inc. president Harry Liu attributed the upward and positive movement of PSE’s price to favorable economic indicators such as the increasing remittances from the overseas Filipino workers (OFWs) and government spending, lower oil prices, steady interest rates and stabilizing peso-dollar exchange rate.

”More government spending will help boost the economy… All these (factors) are making the momentum of the country very positive,” he said in an interview.

Liu said a lot of companies, especially those engage in power and consumer goods are expanding because of the anticipated economic growth.

”The short to medium-term upward trend in (PSEi’s) movement can go 8,000 to 8,200. The index is achieving this level early since we are only in February,” he said.

Nisha Alicer, chief equity analyst at DA Market Securities Inc., said the market also tracked the United States (US) markets as oil prices continued to rally.

”We continue to be positive as we head into first-quarter earnings season. Ahead also is the BSP (Bangko Sentral ng Pilipinas) policy meet on February 12, where the BSP is anticipated to maintain low rates, a growth driver,” she said.

All counters were in positive territory, led by services and mining and oil that surged 1.97 percent and 1.66 percent.

Volume of transactions reached 1.99 billion shares valued at Php7.19 billion.

Advancers led decliners, 109 to 63, while 48 issues unchanged.

The day’s top gainers were led by Liberty Flour Mills Inc., LT Group Inc., Oriental Petroleum and Minerals Corp., Pepsi-Cola Products Philippines Inc. and IP-Egame Ventures Inc. (PNA)