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.