PH stock index hits 6,721.33; analysts urge caution, see correction soon

4:49 pm | Monday, February 25th, 2013

MANILA, Philippines—The local stocks index breached the 6,700-mark for the first time in history on Monday as cash-awash investors sought better yields from equities, driving valuations to dizzying heights.

The main-share Philippine Stock Exchange index gained 56.27 points or 0.84 percent to close at the day’s peak of 6,721.33.

All counters were up but the sharpest uptick was posted by the industrial (+1.68 percent) and services (+1.08 percent) counters.

“The market continues to remain strong driven by continued flows domestically and overseas as evidenced by the pick up in value turnover last week versus the previous week. However, we recommend to buy on weakness as market remains overbought,” said Conrado Bate, president of leading online stock brokerage COL Financial.

“Advise caution on this sharp rise. A correction may happen soon. Take profit and be in the sidelines in the meantime,” said Ramon Garcia, president of local stock brokerage RTG & Co.

Japanese stocks led Asian equities higher on Monday on news that Asian Development Bank president Haruhiko Kuroda and Kikuo Iwata – both monetary doves or those who have vocally advocated monetary easing – may be put on the helm of the Bank of Japan.

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=109349

Tags: Business , Markets and Exchanges , Philippine Stock Exchange , Stock Activity , Stock Market

dprotector

The stock market has been made like a casino to some people. There is no long term goal in their mind, just a quick profit. Maybe the government could tax this people who do this thing.

http://www.facebook.com/people/Francis-Santiago/1009533425 Francis Santiago

In a way, the stock market is like gambling. You always take a risk when investing in whatever stock and in return you earn a profit or you lose your investment. Yan ang scenario when you’re investing sa kahit anong negosyo.
I can also see that you are not aware on how the stock market works. Merong 12% VAT on every “buy” or “sell” that you make. Sa sell nga may sales tax pa aside from the VAT. Meron pang ibang charges by the PSE. So better read up muna before you start being a “keyboard einstein” and start yapping.
http://pulse.yahoo.com/_P4GAMKLWTOEY5N3JH2X3SZ26XA Dexter S

Foreign hedge funds though are a different story and in some respects you may be right in the “casino” analogy if taken under the context of “gambling is akin to investing in any kind of business”. These fund managers who helped heat up the PSE “parked” the money in peso-valued stocks and securities and we are talking about months or years relying (or so they say “gambling”) on a strong peso which gives our stocks more stability than say a Malaysian or a Singaporean stock. OK when I say “park” it’s bound to “leave” or whatever these fund managers wanted to do. In a matter of months these factors favoring a healthy and hot PSE could no longer be there. This factor of “temporary” and “liquid” aspect of our current stocks’ situation does not augur well in the long-term state of the economy kasi what is driving this rise in the stock market is not equated to business expansion and thereby jobs etc.

PH stock index hits 6,721.33; analysts urge caution, see correction soon

News

Sports

Lifestyle

Entertainment

Business

Technology

Opinion

Global Nation