PSE index continues record-breaking climb

Peso closes at its strongest level in nearly 5 years

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A Filipino trader blows a horn during the first day of trading at the Philippine Stock Exchange in Makati on Wednesday, Jan. 2, 2013. The local stock index continued its record-breaking climb as it went past the 5,900 level on Thursday, buoyed by the upbeat sentiment of global markets that welcomed budget developments in the United States. AP/AARON FAVILA

The local stock index continued its record-breaking climb as it went past the 5,900 level on Thursday, buoyed by the upbeat sentiment of global markets that welcomed budget developments in the United States.

Also, the peso strengthened to its highest level in nearly five years as improved outlook on the global economy and favorable sentiment on the Philippines raised investors’ appetite for assets in emerging markets.

The local currency closed at 40.77 against the US dollar, up by 9 centavos from the previous day’s finish of 40.86:$1.

The last time the peso closed stronger than that of Thursday was on March 5, 2008, when it settled at 40.76 against the greenback.

The peso also hit an intraday high of 40.76:$1 Thursday, while the lowest recorded was 40.825.

Volume of trade amounted to $983.7 million—up from the previous day’s $931.8 million.

At the Philippine Stock Exchange, the main-share index surged by 73.06 points, or 1.25 percent, to close at a new high of 5,934.05. A new intraday peak of 5,960.74 was also reached.

Investors snapped up shares of PLDT, AC, BDO, SMIC and Megaworld.

Although PLDT rose at a faster pace, SM Investments kept its bragging rights as the most valuable stock in the bourse, with a market capitalization of P560 billion. PLDT ended Thursday with a market cap of P553.10 billion.

There were 121 advancers against 47 decliners while 43 stocks were unchanged.

“Events in Washington have played out pretty much exactly as we expected, with Congress compromising on a deal at the very last minute. The deal focused on the revenue side and did not address spending or, most importantly, the debt ceiling. This means there is much to do in the New Year,” said BofA Merrill Lynch in a commentary.

“The [fiscal] cliff is behind us, but now ‘three gorges’—the sequester, the debt ceiling, and the continuing resolution for the 2013 budget—all lie ahead,” it said.

The US budget deal, messy and protracted as it was, may have provided an immediate boost for financial markets, but it may spell over the long term for some Asian assets that are coming off a stellar 2012.

Investors may start to shift some money out of overpriced or crowded Asian investments in favor of the United States on the view that the fiscal deal has allowed the US to avoid a recession while it boosts the prospects for American stocks.

“In the short term, US risk premium will come down now that a deal has been struck and might trigger some reversal of flows from Asia back to the US,” said Hong Hao of Bank of Communication International Securities.

Analysts do not expect a major reversal of funds, but more of a subtle shift as some money managers rebalance their portfolios by taking profits on Asian positions and moving those funds into prospective bets in the United States.

The S&P 500 fell 1 percent from September through December last year in the buildup to the presidential election and the so-called fiscal cliff. At the same time, Asian markets rallied. Japan’s Nikkei rose 17.2 percent and the MSCI Asia Pacific ex-Japan index went up by 5.6 percent.

Southeast Asian markets such as Thailand and the Philippines were top performers last year, but a flood of funds has pushed valuations to levels that look less appealing now on a relative basis.

“There are a lot of great companies in Asean. But as a market, the region is looking pretty fairly valued,” said Bill Maldonado, who oversees about $80 billion as chief investment officer in Asia-Pacific for HSBC Global Asset Management.—With a report from Reuters

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  • http://twitter.com/ginotria Gino Tria

    D ko sure kung ok lang na itanong ko dito, pero try na din. :P
    Newbie investor here. 

    I wanted to invest in stocks matagal na, but figured its to risky for me kasi marami pa akong hindi alam. So, I decided to get started investing in mutual funds muna. I did early of December and the plan was to invest monthly (peso-cost Averaging).

    After some reading this Christmas break (the more I read lalong nadadagan ung d ko alam hehe),
    I’ve been introduce to index funds, it say its better than MF and safer way to enter in the stock market. 

    Ang tanung, ano ung mga Index funds na meron dito sa Pinas? And how can I invest?

    Maraming Salamat! Mabuhay ang Pilipinas!

  • BawalAngReklamador

    Kahit SINONG Pilipino na kayang mag-“maintain” ng gastos sa cellphone.. KAYANG-KAYA din nya SIGURADONG mag-“INVEST” sa stock market..

    KULANG lang talaga sila sa KAALAMAN kung papano PAPASUKIN ang nasabing stock market.. 

  • akosimickeymouse

    A LOT OF PEOPLE DO NOT INVEST IN BUSINESS, THEY INVEST IN BUSY-NESS, THEY PURCHASE A JOB….BUT WHO STANDS AT THE END, IT IS BUSINESSMEN AND THOSE WHO ARE NOT SUFFERS FINANCIALLY….HOPE MOST OF THE PEOPLE MUST TAKE A RIDE ON BULLIES T PHILIPPINES GROWTH NOW….START TO INVEST NOW!!!!

  • http://profile.yahoo.com/AP3QMMXTZ4UKMY7XXISPGHJA4Q Michael

    The stock market enables everyone, rich and poor, to participate in this positive economic run. So, as everyone said, it’s up to you to make yourself prosperous. Don’t rely on hand-outs, hand-downs, etc. Rely on your own hand.

    But as Warren Buffet communicated, be wary when everyone’s greedy. I, too, got burned by the 2008 economic meltdown and couldn’t redeem my investments lest I lose money. So, invest with caution. I remember 2007 the market was on a high and I made heavy investments. But I now I think I’m a bit wiser.

  • NoWorryBHappy

     I will reserve my next enthusiastic comment when the booming Philippine Stock Exchange breaches the 6,200 mark. Woo-hoo !!!

  • WeAry_Bat

    I hope I am not smelling sucker-baiting around here.

  • kulittwit

    9 years of corrupt arroyo regime, how many record breaking climbs? In one year of PNoy (2012) – 38 all-time highs!

  • http://pulse.yahoo.com/_XNBUUMFGHLCZQMA2UV7YPTKKX4 Margie

    This is like a jobless growth where I think the rich are getting richer while the poor are left behind.

    • im_earth

      okay lang yan , at least ung mayayaman nagbibigay ng trabaho sa mahihirap.
      daming kita ng mayayaman, daming job opportunity ang mahihirap.

    • akoangsimula1024

      This is actually the misconception of stock market – that it is only for the rich people. I just invested in stock market like 3 weeks ago and I am glad that most of my portfolios are making profits. Di ako mayaman at bago ako grumaduate, my family cannot be considered as middle income earners. I just work hard, study hard and I am very eager to escape poverty. kung lahat lng sana eh may motivation at willingness to fight poverty, wala sigurong mahirap. Di ako naniniwala na walang wala tlga lahat ng mahihirap kasi sa mismong depressed area, dun k makakita ng maraming umiinom, nagsusugal, naninigarilyo. Minsan lang tlga umaasa lng tayo sa tulong ng iba at mareklamo pa. You just have to really help yourself kung gusto mo talagang umasenso.

      • rayingga

        You hit the target….. Keep on posting that kind of positive attitude it is a great motivation.

      • PinoyDude

        Correct ka dyan kapatid.

        I hope this mindset is adopted by every Filipino. I’m part of the working class population in Metro Manila.

        You have to do your part to make your life better.

      • help_our_country

        kaya nga pag may umpukan or kaunting inuman,ang topic kong binubuksan…mag-impok kahit kaunti buwan-buwan then mag-invest para lumago ang naimpok.

      • http://twitter.com/alfs_alfs Pons Corpuz

        I agree 100%, almost the same situation as I am. Must worst, na-experience ko pa 2008 financial crisis but I never gave-up. Now, I am almost half way living off through stock market alone.  The formula really, as you have said earlier, is hard work, positive attitude and bawas bawasan ang pagiging mareklamo.

    • Daang_Tuwid2

      Nope, I sold my share last week ang got a windfall profit.. from 37 pesos to 105 SMC preferred

    • Diablo_III

      nahiya ka tuloy…

      • http://twitter.com/alfs_alfs Pons Corpuz

         Hahaha.. nice one.

    • http://twitter.com/alfs_alfs Pons Corpuz

      Paano mo nasabi yan? I am not rich but I invest and make money through the stock market.

      • WeAry_Bat

         Look up ‘Rapid economic growth but with less jobs’ just today.

    • BawalAngReklamador

      Yan ang akala MO.. MAG-ARAL at MAGSALIKSIK pang mabuti kabayan..

  • http://www.facebook.com/weya.sago Weya Sago

    if only filipinos practice financial planning, we can actually enjoy the economic boom instead of whining that they don’t feel the growth…

    • rayingga

       How i wish majority of us have that kind of reasoning, minus reklamo.

    • BawalAngReklamador

      TUMPAK kabayan..

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