PSEi breaches 9,000 pts ; peso trades sideways

MANILA — Positive sentiments on the Philippine economy pushed the Philippine Stock Exchange index (PSEi) to a new record high Friday, while the peso managed to close little changed against the dollar even after the greenback’s recovery.

PSEi surged to 9,041.20 points, up 0.47 percent or 42.03 points, attributed by a trader to investor sentiment on the sustained growth of the domestic economy.

The trader attributed this partly to the recent government report on the 2017 expansion of the domestic economy, which registered a 6.7 percent growth as measured by Gross Domestic Product (GDP).

This growth is next to China’s 6.9 percent and Vietnam’s 6.8 percent expansion last year but is within the government’s 6.5-7.5 percent target range last year.

PSE President and CEO Ramon S. Monzon, in a statement, said the main index registered eight record highs so far this year and has risen by 5.6 percent to date.

He pointed out that “while the PSEi was unsuccessful in its two attempts earlier this week to break the 9,000 level, today the index finally penetrated this important mark.”

“The journey to record territory reflects the high confidence investors have in our market,” he said.

“We are hopeful that the market’s level will be sustained on the back of solid macroeconomic fundamentals and on expectations of upbeat corporate earnings from our listed companies. Our market is likewise in sync with regional bourses that have reached record highs this month,” he added.

With this development, the broader All Shares went up 0.33 percent, or 17.05 points, to 5,262.30 points.

Most of the sectors also ended the week positively, with Holding Firms leading the list at 1.02 percent followed by Property, 0.75 percent; Industrial, 0.14 percent; and Services, 0.03 percent.

On the other hand, Mining and Oil fell 0.76 percent and Financials, 0.44 percent.

Volume reached 1.02 billion shares amounting to PHP7.8 billion.

Gainers led losers at 110 to 97 while 52 shares were unchanged.

BDO chief strategist Jonathan Ravelas, in a tweet, said the main index’ performance during the day “highlights the market still has some gas to try the 9,100/9,350 levels.”

“Immediate support and resistance is seen to 8,600 and 9,100 levels, respectively,” he added.

The peso finished the week sideways at 50.84 from the previous day’s 50.81, which another trader pointed to comments by US President Donald Trump, who said he expects the greenback to further strengthen.

For the day, the local currency opened at 50.91 from Thursday’s 50.86.

It traded between 50.95 and 50.80, resulting to an average of 50.88.

Volume for the day totaled to USD1.053 billion, up from the USD1.049 billion a day ago.

The peso is projected to trade between 50.70 and 51.00 to a dollar next week. (PNA)