The Philippine Stock Exchange Index (PSEi) extends its rally to breach the 7,500 level on Wednesday. Analysts say that the increase is an effect of the optimism on the Philippines' first quarter gross domestic product (GDP) growth. Read on to learn more about the PSEi news update.

PSEi breaches the 7,500 level

According to the PSE's Daily Quotations Report on Wednesday, the bellwether PSEi closed at 7,584.21 on Wednesday, which is up 1.84 percent or 137.72 points from Tuesday's 7,446.49 level. Meanwhile, the broader All Shares index also increased by 1.14 percent or 51.21 points to finish at 4,511.77 level.

"Philippines stocks continued to surge for the third straight day with the The Dow Jones Industrial Average closed up 39.03 points, or 0.2 percent, at 20,689.24," The Philippine Daily Inquirer reported Regina Capital’s Luis Limlingan as saying. “However, the most telling sign was the government’s optimism with National Economic and Development Authority’s projection of a 7- percent year-on-year growth in first quarter GDP (gross domestic product).”

PSEi forecast

Limlingan said in a BusinessWorld Online report that in the next few days, he expects the main index to move between the 7,430 to 7,700 range. "On a purely technical standpoint, the PSEi has broken new ground this year, finally piercing through the 7,400 level and investors are anticipating a higher trading range," Limlingan added.

Sectoral indices summary

The PSEi chart shows that all counters performed well too, particularly the property sector which had an increase of 91.21 points or 2.82 percent, closing at 3,316.28 points. The financials sector also went up by 38.78 points or 2.07 percent to 1,904.71. Holding firms and industrials rose to 7,605.84 and 11,113.88, respectively. On the other hand, mining and oil added 71.92 points or 0.59 percent to finish at 12,215.20, while services gained 15.78 points 0.99 percent to close at 1,600.79 points. 

Foreign buyers vs sellers, Advancers vs decliners

Net foreign purchases reached P1.25 billion. Foreign buying was at P6.3 billion, while foreign selling was at P5.1 billion. Advancers were at 111, beating the 75 decliners. Forty-eight stocks remain unchanged while 1.69 billion shares changed hands. Value turnover on Wednesday was at P10.78 billion.

What do you think of the PSEi breaching the 7,500 level on Wednesday? What about the PSE All Shares Index’s positive performance? Do you think it will continue to soar in the coming days? Let us know in the comments area below.

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