Stocks continue dizzying climb

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The local stocks index breached the 6,700-mark for the first time in history Monday as cash-awash investors continued to chase yields, driving equities 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. This marked the PSEi’s 21st record breakout for the year, making some stock dealers jittery about valuations.

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 pickup in value turnover last week versus the previous week. However, we recommend to buy on weakness as the market remains overbought,” said Conra do Bate, president of online stock brokerage COL Financial.

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

Since the start of the year, the PSEi has gained a total of 908.60 points or 15.6 percent.

Meanwhile, risk appetite was buoyant across the region Monday. Japanese stocks led Asian equities higher.

At the local market, the biggest index gainers on Monday were Megaworld (+4.17 percent), Manila Water (+4.16 percent), RLC (+3.41 percent), AC (+3.33 percent), SMC (+2.5 percent), EDC (+2.43 percent), Philex (+2.27 percent), BDO (+2.27 percent), MPIC (+1.78 percent) and FGEN (+1.74 percent).

Value turnover amounted to P7.81 billion. There were twice as many gainers as there were decliners.

SMIC, the day’s most actively  traded stock, gained by 0.7 percent to close at P1,024. This gave the Sys’ holding firm a market capitalization of P633.61 billion, making it the most valuable company in the stock market, dislodging PLDT’s P620 billion.

Meanwhile, the index laggers for the day were SMDC (-3.97 percent) and BPI (-3.07 percent). SM Prime, Semirara, DMCI also closed in negative territory. Doris C. Dumlao

Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.

  • investor888

    At this point of the Market, it will be a good point to sell on strength as Market is at over bought condition.  Another point to consider is the Meralco report w/c manifests a lower % growth in the first two months of this year.

  • abantero

    exactly. but if your investment is for the long haul, meaning your stocks are spread on companies  that really make profits no matter how the market behaves, then there’s nothing to worry about if this present equities bubble bursts. even if the market further skyrockets to almost unbelievable heights and eventually plunges to abysmal depths, you can still sleep soundly at night  

  • MountainDawn

    This should be the right time to unload.

  • abantero

    be fearful when others are greedy. be greedy when others are fearful. intelligent investors should heed this Warren Buffett proverb. The herd now is outrageously greedy, lapping up overvalued stocks left and right. When Mr. Market corrects itself, it would be a disaster (for those greedy)

  • http://pulse.yahoo.com/_P4GAMKLWTOEY5N3JH2X3SZ26XA Dexter S

    Once it corrects then it is the right time to buy again.  

  • linobog

    Watch out  of overheating and overloading.   The vultures are already salivating .

  • tadasolo

    This is the making of a bubble. What goes up so fast gravity will guarantee a hard landing

  • http://pulse.yahoo.com/_P4GAMKLWTOEY5N3JH2X3SZ26XA Dexter S

    There IS a bubble.  There is a temporary huge demand driven by investors (many of these are foreign hedge funds) who have cash in hand making the stocks over-valued.  Now this needs technical correction soon rather than later. burst the bubble now while it is little. 

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