Philippine stocks rally past 6,400 as new money pours into market

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MANILA, Philippines—Local stocks rallied further into uncharted territory on Monday, breaking past the 6,400-mark for the first time, as yield-seeking investors snapped up equities amid rosy prospects for the year.

The main-share Philippine Stock Exchange index soared by 117.37 points or 1.86 percent to close at a new record high of 6,435.98.  A new intraday peak was likewise touched at 6,449.44.

This marked the local stock market’s 14th record breakout for the year and the 75th under the term of President Aquino, whose anti-corruption battle-cry has boosted investor confidence in the country.

Fund managers said new money was pouring into the market, as reflected by increasing value turnover.  With interest rates at record-low levels, some investors are reallocating more funds into equities. Based on anecdotal evidence, there is a growing list of institutional and retail investors buying into the market for the first time.

At the same time, the upbeat sentiment in Wall Street is also supporting regional risk appetite especially after the latest US jobs and factory data boosted expectations of economic recovery.

“Demand for local equities is very strong,” said the chief of a leading foreign brokerage.

Value turnover at the stock market on Monday amounted to P11.18 billion.  There were 130 advancers that overwhelmed 50 decliners.

All counters jumped but the day’s biggest gainer was the holding firm counter (+2.57 percent) as conglomerates are seen as a proxy to the growing economy.

Investors loaded up on shares of BDO (+4.14 percent), Petron (+7.52 percent), PLDT (+2.13 percent), Ayala Corp. (+4.08 percent), AGI (+3.45 percent), SMIC (+2.94 percent), MPI (+2.49 percent) and SMC (+4.62 percent).  Metrobank, EDC, ICTSI, AEV, Megaworld and URC also contributed to the PSEi’s gains.

Among non-index stocks, Puregold (+3.43 percent), Bloomberry (+3.34 percent) and GT Capital (+2.98 percent) surged in heavy volume.

Stock markets across the region were also mostly firmer, but none in the magnitude of PSEi’s upswing.  Upbeat capital spending announced by large corporations, such as SMC, MPI, Petron and GT Capital, also contributed to the buoyant sentiment locally.

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  • http://joboni96.myopenid.com/ joboni96

    welcome carpetbaggers

    have a good jolly time
    playing sabong in the stock market and

    fleecing us pilipinos

    may araw din kayo

  • Jose_Mercado

    I think the President deserves a high 5 here. Lets just hope that he can continue and maintain this growth. As a citizen, we should support our leaders that are doing their best for our country. I believed that this is now the right time to forget politics for a while and save and use our energy to help push for better economy.

  • http://profile.yahoo.com/A5P5A55EDR5GIRMTPIPEHVFZCM tibod

    The central bank has made it harder for speculators like Soros to buy and dump and for hot money to move in and out abruptly. It starts with people- It was people who applied, got approved and spent away with their credit cards that almost did Korea in before or Thai banks that extended lots of car loans to Thais who didn’t have much to start with. The sky high and crazy valuation of real estate in Japan years ago that attracted a disproportionate frenzy of real estate transactions that did not realize a sizable ROI causing unheard of debts straining and draining their banking system among other factors, caused them a lot of headaches and a domestic lack of trust making it hard for the government to educate and encourage domestic spending resulting in a staggeringly stagnating economy. The US extended soft loans for years to people who had low credit ratings not only in real estate but also in the credit card sector almost with their fingers crossed. When the reality hit them smack in the face, recession made a come back and the Fed had to infuse more money in terms of rescue packages. Today, despite its gargantuan GDP, the US has one of the highest debts the world has ever seen.

    We have positioned ourselves wisely, thanks to a good president. Had PNoy been like Arroyo, the devastation her stealing would have wrought would have been unimaginable. All told, with investor confidence and a smart economic policy that concentrates in combating graft and corruption and clever Central banking in place, a bubble will not occur and economic expansion will gather and sustain conservative but strong and sustainable growth as hoped in the Philippines. Short, we love it slow but sure. Progress comes to those who know who to vote and how to wait.

  • http://profile.yahoo.com/A5P5A55EDR5GIRMTPIPEHVFZCM tibod

     Or we can make the peso rise just to pay off our external debt and lower it down thereafter by pegging it back to the gold standard rather than the dollar. If it doesn’t go down, a really strong peso is a great thing to have in the long run because that would mean businesses will have the parity unheard of before for capital expenditures such as manufacturing plants and other high value industries that will need Filipinos to man which means majority of the OFWs will now work in the Philippines rather than in other countries. When the Korean economy started to really grow back in the late 80’s and into the 90’s almost all of their OFWs went home to work in Korea rather than in other countries. True, the transition towards being a high income economy will be such a pain but shall be worth it.

  • http://profile.yahoo.com/A5P5A55EDR5GIRMTPIPEHVFZCM tibod

    Wait til we get an investment grade rating and you all will see real progress.

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