The Philippine Stock Exchange index closed 2017 with a new record on Friday, buoyed by optimism over the economy next year.

The index finished at 8,558.42, up 23.33 points from Thursday. It earlier breached the 8,600 level with 8, 628.83 before the noon break.

This is the first time the index closed at a record high at the last day of trading. For 2017, this is the 14 th time the index hit new records, resulting in a gain of 25.1 percent for the year.

Meanwhile, the peso ended at P49.30 against the US dollar from P49.98 on Thursday. Volume at the Philippine Dealing System reached $742.20 million from $625.30 million on the previous day.

Socioeconomic Planning Secretary Ernesto Pernia, in a text message to the Daily Manila Shimbun, said the record finish of the PSE Index means"confidence in the economy with a strong finish and continuing through the New Year."

Ramon Kabigting, head of research at Papa Securities, told ANC in an interview: "We should look at what's happening to the economy. With Mr (Socioeconomic Planning Secretary Ernesto) Pernia considering 8 percent growth."

"What's important behind it all is the ingredients for a robust economy-- consumer spending and infrastructure projects," said Kabigting.

Kabigting said there will be "an inflationary effect" as fuel prices will be affected by tax increases. "There will be an inflationary effect, but there has been measures to deflect it from the most vulnerable," he added.

The Philippine Stock Exchange, Inc. elebrated the last trading day of 2017 with a bell ringing ceremony at the Ayala and Tektite trading floors.

Five of the six sectoral indices also posted year-to-date gains. The financials sector was up the most as it rose by 34.7 percent for the year. The mining and oil sectors was the lone decliner as it lost 3 percent.

Daily average value turnover rose by 3.2 percent year-to-date at P8.06 billion. DMS