PSEi breaches 6,000 mark


MANILA, Philippines—The Philippine Stock Exchange index on Monday rallied past 6,000 for the first time in history, marking a record high for the fourth straight session as investors loaded up on equities in anticipation of another good year.

The PSEi gained 73.46 points, or 1.23 percent, to close at the day’s peak of 6,044.91, also a new intraday high record for the market, which bucked the profit-taking seen in most other markets in the region.

The rally was driven by ample liquidity in the financial system seeking higher yields alongside favorable economic numbers, said Bede Lovell Gomez, assistant vice president at investment house First Metro Investment Corp.

All sectors contributed to the upswing but the biggest gainers were mining/oil (+1.79 percent), financials (+1.57 percent), property (+1.45 percent) and holding firms (+1.24 percent).

Value turnover amounted to P8.5 billion while 107 advancers outnumbered 71 decliners. The biggest index gainers were Megaworld, BPI, MPI, SMC, Philex, AGI, Belle, Metrobank, ICTSI and SM Prime.

Meanwhile, PLDT (+0.45 percent) regained its position as the most valuable company in the local bourse with a market capitalization of P572.55 billion, a very narrow margin over challenger SM Investments’ P568.15 billion. SMIC, which announced an alliance with the Waltermart group of companies, rose 1.2 percent to P923 a share.

Gomez said last week’s favorable inflation report and a favorable sentiment across the region fueled the breakout past 6,000.

It was reported that inflation in December stood at 2.9 percent, slightly higher than the 2.8 percent in November. For the whole of 2012, inflation averaged 3.2 percent against 4.6 percent in 2011, thus hitting the lowest annual average in five years.

“Funds would like to position early. They are looking for the 12-month view,” Gomez said.

He said the local market was still a “buy” as the index would likely rise further to 6,800 this year, supported by a 20-percent average growth in corporate earnings. He said the market would likely tolerate a price-to-earnings (P/E) ratio of 17x this year, which means they will pay 17 times the amount of money the marker will make in 2013.

Ismael Cruz, president of IGC Securities, said the market was trading at the high-end of the historical P/E range of 12x to 18.5x. On average, the market trades at about 15.5x projected earnings.

Originally posted at 03:48 pm | Monday, January 07, 2012

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  • Chris

    Maraming mahirap ang nagsasabi na wala silang panginvest kasi kulang na kulang pa raw kita nila pero pag tinanong mo kung merong panginom at yosi meron pala naman. I save mo for one year, the following year sobra sobra pa na panginvest sa stocks.


    God bless the Philippines.

  • mojo76

    yes this is a good news start of 2013 hope for more bleassing  to come…… always to those crab mentality pinoys here post your negative comment…..

  • INQ_reader

    There’s so many condescenders against squatters here, as if they already made millions in the stock market.

  • rodben

    Maybe the minimum wage earners can join in stock market if no eat for 15days, don’t feed even ordinary milk to their babies if they had, don’t pay house rentals in squatter area, don’t pay the higher meralco bill and water bill, don’t pay jeep fare while going his/her daily routine as sales lady/boy in malls, service crew in fast food/restaurants, construction workers or temporary factory workers, security guards among others.

    • Don Dee

      Lol! Binirit pa rin talaga nya ang punchline nya even when the response to his question was a clear yes! Pwede kahit maliit pera mo mag invest sa stock market. Kahit minimum wage earner pwede. Kung meron pambili ng cellphone pwede bumili ng stock. Sus ginoo, walang cellphone sa squatter area?

    • INQ_reader

      Maybe you buy book learn english.

  • rodben

    Does the minimum wage earners can join in STOCK MARKET, how?

    • Count du Fount de Cakes

      yes of course!…. check out the www(dot)colfinancial(dot)com webpage. It will only cost you around Php 5000.00 to partake in the stock market. But only buy well-known and time-tested big companies for a start.

    • Weya Sago

      buy a mutual fund or uitf… less risk and automatic diversification

    • joshmale2004

      You can check also incoming IPOs. You can get a cheap price per share and let it go up for a couple of months before unloading. Blue Chips are quite expensive nowadays.

    • OFW_Investor

      You need a broker to invest in the stocks market. Opening an account is basically the same as opening a bank account. They will require proof of residence, signature cards, Govt issued ID’s. After opening an account, a deposit is required to start investing /buying shares. COL Financial requires initially min 25K for trading individual stocks and 5K for their EIP (Easy Investment Plan) where the Fund managers invest your funds in your behalf. So, if you got a bank account, you can invest in the stock market by also opening a brokerage account.

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