Philippine stocks closed higher to 5,823.94 points on the PSEi Friday as seasonal trends and positive sentiment continued to drive a rally into its fourth day in a row ahead of the four-day weekend.
The PSEi rose by 26.20 points or 0.45 percent from 5,797.74 Thursday. The rally was also felt in the broader all-shares index that closed 0.18% higher to 3,700.5.
Nearly 2.5 billion shares were traded at P7.98 billion. Gainers edged up on losers 84 to 73, while 50 stocks remained unchanged.
“The rally was sustained by continued positive sentiment on domestic fundamentals,” Krizia Syquiapco, analyst at PAPA Securities Corp. “S&P's upgrade of the credit rating outlook encouraged investors to position in the stock market,” she added.
Syquiapco noted that investors focused on “domestic fundamentals and not offshore developments,” as most Asian stocks were down on Friday.
On Thursday, Standard & Poor's Ratings Service (S&P) upgraded Philippine credit rating outlook to “positive” from “stable,” heightening the possibility of an upgrade to the coveted investment grade within 12 to 18 months.
While noting that S&P's upgrade was the main driver during the rally Friday, Asiasec Equities Inc. market strategist Manny Cruz noted that seasonal trends also helped lift most stocks during the morning and afternoon session.
“The traditional year-end rally has pushed the market further,” he said.
“Barring any massive declines in the US market, we might hit a new record high in the coming weeks,” Cruz added.
Syquiapco said there is a “fifty-fifty” chance of breaking the 37th all-time high for the year of 5,831.50 on Dec. 11.
“Strong fundamentals are there but resistance on the last high is strong, as profit taking remains on risk of losses amid uncertainty overseas,” she said.
“It would need an extra push from better global investment environment to reach a new record,” Syquaipco noted.
Philippine markets are closed on Monday and Tuesday for the Christmas holidays. Trading resumes on Wednesday, Dec. 26. — VS, GMA News
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