By Zinnia B. Dela Peña (The Philippine Star) Updated February 21, 2012 12:00 AM
MANILA, Philippines – Local stocks roared to a new record high Monday, breaching the 4,900 level, buoyed by China’s move to lower the reserve requirement for banks and optimism Greece will soon secure a second bailout package needed to avert a chaotic debt default.
The Philippine Stock Exchange index (PSEi) surged 63.13 points or 1.29 percent to close at a new all time high of 4,943.84 on sustained positive investor sentiment.
The previous high was last Feb. 17, 2012 at 4,880.71 points. Year-to-date, the index has gained 13.1 percent. Intraday, the PSEi hit a new high at 4,966.94 points surpassing the previous record intra-day level of 4,886.99 points posted on Feb. 17, 2012.
“The market’s rally close to the critical 5,000 level can be seen as a vote of confidence by investors on the positive direction of the global economy. Likewise, investors are anticipating improved earnings results from our listed companies in the coming weeks, coupled with rosy expectations of another banner year in 2012,” PSE president and chief executive officer Hans B. Sicat said.
A total of 13.35 billion shares worth P10.58 billion changed hands yesterday. Advancers led decliners 105 to 63 while 41 were unchanged.
All sectoral indices were in the green except the services counter which fell nearly one percent. The property sector posted the biggest increase at 4.4 percent followed by the mining and oil which rose 2.69 percent followed by the financial services counter (2.5 percent).
Leading yesterday’s uptrend were SM Prime Holdings which appreciated by 8.02 percent to finish at P17.50 apiece, Banco De Oro (up 5.37 percent at P67.75), Ayala Land (4.88 percent at P21.50), Aboitiz Equity Ventures (4.22 percent at P46.90), and Metrobank (3.53 percent at P85).
Accord Capital Equities Inc. said investors are growing more optimistic that a $130-billion euros rescue package for Greece could finally be finalized.
China’s central bank on Saturday cut its reserve requirement ratio , the amount of cash banks must hold in reserves , boosting in turn lending capacity by an estimated 350-400 billion yuan or approximately $55.6 to $63.5 billion.
“The forward outlook remains rosy but we remain on alert for possible short-term negative volatilities,” Calaycay said.