MANILA, Philippines (UPDATE) - Local stocks rose to a record high for the fourth straight day on Wednesday, breaching the 4,500 level, as investors took their cue from the rise in the US and Asian markets.
The key Philippine Stock Exchange index rose 21.39 points or 0.48% to 4,507.04. Year-to-date, the PSEi has gained 305.9 points or 7.28%.
"The market was upon the back of positive news from overseas markets overnight. The Obama administration is coming up with a deal with Republican-controlled Congress to allow a higher debt ceiling. In Europe, there are some indications there will be near-term solutions to European debt concerns," PJ Garcia, senior vice president of BPI Asset Management, told ANC Dateline Philippines.
The Dow rose 1.63% on Tuesday, while the broader S&P 500 also jumped 1.62%.
Locally, investors were bullish on corporate earnings, Garcia said. He added investors continued to pick up mining issues on the back of rising commodity prices.
"Second quarter earnings may be better than expected. Investors are positioning for that. We're also seeing a lot of activity in the mining sector."
PSE president and CEO Hans Sicat, for his part, said: "We continue to be optimistic that positive economic fundamentals and favorable corporate earnings towards the end of the year will further boost market confidence."
Except for the property sector, all PSE subindices finished in green. Mining and oil issues continued to rally, with the index closing up 2.5%.
Gainers outnumbered losers, 99 to 58, while 36 stocks were flat.
A total of 10.29 billion shares valued at P6.7 billion changed hands.
Lepanto Consolidated Mining Co. "A", the most actively traded stock, surged 3.4% to P1.20.