MANILA, Jan. 22 (PNA) — The Philippine stock market breached the 6,100 mark after posting its biggest gain for the year on Wednesday, as investors cheered news the International Monetary Fund (IMF) raised its global economic outlook for the year.
The barometer stock exchange index extended its run to a sixth day, its longest winning run since October last year, surging 120.62 points or two percent to 6,139.86 from previous day’s 6,019.24 close.
Jun Calaycay, an analyst of Accord Capital Equities Corp., said local share prices tracked the United States equity market.
He said the IMF also revised upward its outlook for global growth to 3.7 percent in 2014 from 3.6 percent in October, citing the headway made by advanced economies.
”The index has not only validated the 6,000 level but has breached through the 6,100-mark. This type of an action raises the prospects of a near-term pullback on a more aggressive profit taking. Nevertheless, it serves to add credence to the bulls’ propositions,” he said.
But Calaycay said share prices are expected to resume gains on the next decline.
”With the break of the 6,000 level, (we) could see 6,300-6,350 levels in the near-term ahead of the fourth-quarter GDP (gross domestic product) report next week,” said Jonathan Ravelas, chief strategist at Banco de Oro Unibank.
Government economic planners expected the Philippine economy to have grown by 6 to 7 percent in 2013.
In Wednesday’s trading, almost all sectors posted remarkable surge, led by financials and property stocks that zoomed 2.98 percent and 2.06 percent.
Trading volume increased to 3.06 billion shares valued at P8.29 billion.
Advancers won decliners, 114 to 60, while 39 stocks were unchanged. (PNA)