PSEi breaks into new record levels

The Philippine Stock Exchange index broke past 4,200 to post a new record high on Thursday as investors remained bullish on corporate earnings and economic fundamentals. The PSEi rose 48.26 points or 1.15 percent to close at 4,245.05. More than 1.259 billion shares valued at P5.012 billion changed hands. Advancers beat decliners 70 to 54, while 56 issues were unchanged. “There was no negative corporate news that could pull the market down," said Harry Liu, president of Summit Securities Inc., noting that strong investor optimism on corporate earnings this quarter would remain a major influence on the market. Robust economic indicators that solidified the country’s “economic resiliency" were definitely giving the market the right signals that investors were receiving, he added. The bull market has been fueled by a better-than-expected gross domestic product and a drop in interest rates that prompted a shift toward equities, he added. “[Positive] sentiments are made even more bullish by the current strong run up in the major bourses abroad. The run up abroad maybe in the early stage near term and should help [further boost] confidence [in Philippine] equities," according to AB Capital. Martin Santos, trader of First Metro Securities Inc., pointed out that while the “uptrend remains intact, stocks may take a breather [in the near term] as technical indicators suggest that most have already reached overbought levels." “As funds experience some rotational buying and portfolio re-balancing, we will likely see increased activity in second- and third-liners in the incessant search for yields," Santos added. — VS/OMG, GMANews.TV