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MANILA, Philippines - (UPDATED 5:33 p.m.) The Philippine stock market on Thursday broke through uncharted territory, closing above the 5,300-mark for the first time on the back of favorable domestic economic growth prospects.
At the Philippine Stock Exchange, the composite index rose 71.57 points or 1.37 percent to 5,300.41, surpassing its previous high of 5,228.84 on Wednesday, and marking the 19th time the main index has rewritten record levels this year.
Year-to-date, the PSEi has gained 928.45 points or 21.20 percent. Intraday, the benchmark index reached another record level at 5,300.52, beating the previous day’s level at 5,269.97.
Gainers edged out decliners, 83 to 79, while 42 stocks were unchanged. A total of 3.09 billion stocks worth P9.1 billion changed hands.
“Expectations of stronger economic growth have spurred more investor interest in the equities market," said Hans B. Sicat, PSE president and chief executive.
"The administration’s recent projection of a five to six percent economic growth in 2012 is also affirming this sentiment. Hopefully such growth will continue to redound on corporate earnings and sustain the market’s hike to new levels," Sicat added.
Local share prices defied the Asia-wide slump, raising some worries of possible overextension, said Jun Calaycay of Accord Capital Equities Corp.
Other Asian markets closed lower, dragged by Chinese banks, global jobs report and a drop in gold prices.
Overnight, the Dow Jones industrial average slid 10.75 points, or 0.08 percent, to 13,268.57 after a report on private sector hiring fell far more than expected in April, igniting fears of a deterioration in the US job market.
"The heat of buying continues despite overbought conditions, but somehow the euphoria continues," said Astro del Castillo, managing director at First Grade Finance Inc.
"Talks of an oncoming correction heightens as the index pushes towards the 5,300-mark with little motive force behind, except earnings," Calaycay said.
Actively traded stocks were Bloomberry Resorts Corp., GT Capital Holdings Inc., Alliance Global Group Inc., Philippine Long Distance Telephone Co. and Security Bank Corp.
Philex Petroleum Corp. became the day's biggest gainer, rising 28.57 percent to P27 apiece, while Primex Corp. gave up 20.27 percent to P2.40 each.
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