PSEi continues uptrend, posts new record high amid Q2 earnings optimism

Anticipation of positive corporate earnings in the second quarter continued to lift Philippine share prices and scale a new high on Wednesday. The bellwether 30-company Philippine Stock Exchange index rose 21.39 points or 0.48 percent to 4,507.04 while the all shares jumped 20.36 points or 0.66 percent to 3,124.09. The main index's new intraday high, meanwhile, was at 4,515.77. “The stock market’s resilience has echoed the positive sentiment in Asian and US shares. We continue to be optimistic that positive economic fundamentals and favorable corporate earnings towards the end of the year will further boost market confidence," PSE President and Chief Executive Officer Hans B. Sicat said. Market breadth was positive with 99 gainers leading 58 losers and 36 stocks that closed unchanged. Except for Property which inched down 0.15 percent, all other five sectoral indices advanced, led by Mining & Oil's 2.51-percent climb. Volume traded reached 10.29 billion shares valued at about P6.74 billion. "Investors' optimism has been growing as the country continues get favorable upgrades and recognition from international financial institutions. Moreover, hopes of a stronger second quarter for corporate earnings and economic activities are also fueling the market's current run up," said Prince Anthony Yeung of AB Capital in a market note posted online. The Philippines has received credit ratings upgrade from Moodys and Fitch owing to the country's favorable economic prospects and improving fiscal consolidation. The perceived strength of the local economy also lends support to better earnings for Philippine companies. Three of the five most active stocks for the day posted gains. Lepanto Consolidated Mining Co. "A" , the day's top traded, added P0.04 or 3.45 percent at P1.20. Banco de Oro Unibank Inc., the country's largest lender in terms of assets, surged P1.95 or 3.31 percent to P60.80, while rival Metropolitan Bank Trust Co., slid P0.20 or 0.25 percent to P78.75. Geothermal power producer Energy Development Corp. gained P0.02 or 0.29 percent at P6.88. Diversifying conglomerate San Miguel Corp. dipped P0.10 or 0.08 percent to P131. -- CMA/OMG, GMA News