Philippine stocks continue to surge
Philippine Daily Inquirer
Local stocks surged for a fourth session on Wednesday, allowing the main index to breach the 5,200 mark, as investors bet on the country’s strong economic fundamentals.
The main-share Philippine Stock Exchange index added 64.08 points, or 1.23 percent, to close at 5,257.92.
First Metro Securities president Gonzalo Ordoñez said the broad-based rally began weeks ago, starting with select index stocks led by PLDT, which climbed a wall of worry.
“As confidence increased, so did breadth, with 110 stocks moving up (Wednesday). While the rally might peter out in July over potential disappointments from external political and economic data, we think this presents selective opportunities to accumulate as domestic fundamentals remain strong,” Ordoñez said.
IGC Securities president Ismael Cruz said the strong performance of the local stock market recently was beyond window-dressing. “It’s due to the country’s strong fundamentals and a re-rating of local stocks. I think it’s more due to the re-rating,” he said.
Re-rating means that investors were willing to buy stocks at a higher price because they have upgraded their outlook on earning prospects.
GT Capital, Bloomberry and Philex Petroleum also posted sharp gains for the day.—Doris C. Dumlao
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