Philippine stocks hit fresh all-time high on 2017's last trading day
MANILA, Philippines – Philippine equities closed 2017 on a cheerful beat, as it posted a record high of 8,558.42 points, with all sectors moving north.
As closing bell rang on Friday, December 29, executives of the Philippine Stock Exchange Incorporated (PSE) rejoiced as PSE index (PSEi) rallied 126 points at 8,558.
This was the 14th time that the main index closed at an all-time high this 2017. For the year alone, the PSEi gained 25.1%. (READ: Philippine peso strongest in 6 months, stocks break 8500 level)
Five of the 6 sectoral indices also posted year-to-date gains. The financials sector was up the most as it rose by 34.7% for 2017, PSE said, while the mining and oil sector was the lone decliner as it lost 3% in 2017.
"Philippine shares closed at another record to end the year even though US Stock Trading has been muted as investors have little incentive to make on assets perceived as risky in the penultimate session of trade ahead of the New Year's holiday on Monday," Marita Limlingan, president of Regina Capital, said in a note.
Stock brokerage firm 2TradeAsia.com said in another note that the record high could be brought by investors' positive sentiment over "the tax reform program and other encouraging leads overseas."
Daily average value turnover rose by 3.2% year to date at P8.06 billion.
Philippine peso sets new 6-month high
Meanwhile, the Philippine peso gained 5 centavos against the greenback, lowering the full-year depreciation of the local currency to just 0.42%.
On Friday, December 29, the Philippine peso closed at a new 6-month high of P49.93:$1, from Thursday’s 49.98 to $1.
This was the local currency's strongest level for the peso since June 19.
Dubbed as the region's weakest currency, the Philippine peso rebounded strongly after it slid by 4.12% to hit a new 11-year low of P51.77:$1 last October 25.
Brokers had speculated that the October 25 drop was due to the rising geopolitical tensions between the US and North Korea and normalization path of the US Federal Reserve, among others.
This Friday's rally, according to a broker, could be linked to strong inflows with the PSEi, which posted a fresh all-time high. – Rappler.com