MANILA - Share prices continued to rally on Monday and hit a new record high just a few points shy of the 8,300 level.

The PSE index climbed for a fifth straight day and closed at 8,294 -- up 1.39 percent from Friday. This was also the third straight session that the market hit a new record.

Lexter Azurin, senior equity analyst at AB Capital Securities, said share prices are climbing as investors are finally seeing positive developments in the government's tax reform program.

Azurin added that the government's infrastructure projects are also finally moving with the approval of several big-ticket projects, and funds are positioning ahead of the end of the "ghost month" this week.

However, he noted that despite the PSE's new record high, there was actually net foreign selling of Philippine shares.

"Surprisingly, the rally has been driven by local funds," Azurin said.

But he added that local funds are "quite liquid," and that the rally is supported by country's strong economic fundamentals.