PH shares breach 4,700 level

MANILA, Philippines – The composite index at the local exchange hit another record high for the second straight day on Thursday, January 19, as investors anticipated a policy rate cut and welcomed positive overseas news.

The Philippines Stock Exchange index (PSEi) gained 22.75 points or 0.49% to close at an all time high of 4,700.37. On Wednesday, the index hit 4,677.62.

A total of 3.15 billion stocks worth P6.92 billion changed hands. Net foreign buying was strong at over P1 billion.

In the last 3 days, PSEI’s total gains reached 121.45 points or 2.7%.

 “The market appears to be enjoying favorable financial and economic indicators that continue to support the market’s rallies,” said Hans Sicat, PSE president and chief executive.

“Expectations over the BSP’s meeting today ranging between holding rates steady or paring off 25 basis points parlayed into heightened interest in equities,” said Jun Calaycay of Accord Capital Equities Corp.

A few minutes trading closed at 3:30 p.m., the Monetary Board announced the much-expected 0.25% rate cut, the first since July 2009.

“The stream of good news continues to flow. The IMF has reiterated its commitment to help Europe and US continues to provide good numbers,” said Astro del Castillo of First Grade Finance Inc.

Appetite for assets from emerging markets, including the Philippines, was supported by surprisingly strong housing figures and manufacturing data in the US. Likewise, the International Monetary Fund pledged to raise another $500 billion for loans to struggling economies in Europe to stave off a financial crisis.

Investors generally shrugged local political goings-on, particularly the impeachment trial of Supreme Court chief justice Renato Corona that is now on its 4th day in the Senate. – Rappler.com