PSEi posts new record high amid positive local earnings reports

Philippine share prices recorded a new high, buoyed by positive local earnings reports and the US deal on raising its debt ceiling, thwarting a default on August 2. The bellwether 30-company Philippine Stock Exchange index soared 46.90 points or 1.04 percent to 4,550.53 while the all shares surged 23.78 points or 0.76 percent to 3,146.84. Market breadth was positive with 109 gainers against 39 losers and 38 stocks that closed unchanged. All six sectoral indices closed in the green, led by Mining & Oil's 2.41-percent climb and Financials 1.33-percent jump. Volume traded reached 6.80-billion issues valued at P5.06 billion. Traders said the market has been widely expecting a consensus on raising the debt ceiling of the US. "First half earnings are now being reported...For sure, an agreement will be reached and this could be a source of relief for investors. What must be focused on now is the quality of earnings that are scheduled to be released…," said Maria Arlysa Narciso of AB Capital in a market note posted online. Asian markets cheered the US deal, with main indices in Australia, Hong Kong, Indonesia, Japan, Singapore, and South Korea trading higher by over one percent respectively. In the local bourse, four of the five most active stocks advanced. Telecommunications giant Philippine Long Distance Telephone Co. was flat at P2,400. Alliance Global Group Inc., the holding firm of Andrew Tan, added P0.42 or 3.63 percent at P12. Metropolitan Bank & Trust Co., one of the country's largest lenders in terms of assets, gained P2.05 or 2.66 percent at P79, while rival Bank of the Philippine Islands rose P1.30 or 2.18 percent to P61. Property giant Ayala Land Inc. leaped P0.28 to 1.66 percent to P17.10. - CMA/OMG, GMA News