PSEi jumps 1.86% to record high on bullish sentiment

The Philippine Stock Exchange index skyrocketed to a new record high Monday as investors intensified their positioning with a view to riding on the prevailing optimism toward corporate earnings and economic fundamentals. The PSEi racked up 76.48 points or 1.86 percent to close at 4,188.31, according to the PSE’s online market information at 12:10 p.m. Value turnover totaled P6.169 billion, with over 2.210 billion shares changing hands. Advancers overtook decliners 96 to 41, and 41 stocks remained unchanged. “Investors are expecting for better fourth-quarter earnings," said CEO Paul Joseph Garcia of ING Investment Management, the largest equity-based investment trust fund unit in the Philippines. Investors remain positive about the market despite the view that second half corporate performance “would not be better" than in the first half, he said. “But the momentum is there. And there is still room for economic growth in the country," Garcia said. Analysts are forecasting an 8-percent gross domestic product of the country this year. As for the third quarter earnings, “they would still end robustly and beat analysts’ expectations," Garcia added. While foreign investors remain the main catalyst behind the market’s bullrun, domestic participation investors is likewise increasing, according to Garcia. There was a healthy correction of the PSEi last week that returned less volatile, according to trader Justino Calaycay of Accord Capital Equities Corp. Trader Martin Santos of First Metro Securities Brokerage Inc. also said the PSEi edged up as Wall Street gained Friday. “Overall bullishness [in] the market continues," he added. Local stocks are just taking the path of “least resistance" right now, Santos said, noting that the general trend is “still up." —VS, GMANews.TV