PH stocks hit new high
MANILA, Philippines–Post-election optimism and a good stream of corporate earnings on Wednesday powered the main Philippine stock barometer to a new record high breaching 7,400 in intra-day trade.
The main-share Philippine Stock Exchange index surged by 78.74 points or 1.08 percent to its best finish of 7,392.20, marking the 31st record-closing for this year and the 92nd under the Aquino administration. A new intra-day peak was likewise hit at 7,403.65.
“The market continues to be driven by foreign flows as they increase weighting in the Philippines. Investors are encouraged by the results of the elections, wherein PNoy (Pres. Noynoy Aquino) garnered stronger support in the Senate. A strong mandate should enable the administration to push forth with its reform agenda,” said COL Financial president Conrado Bate.
“Note though that the market remains overbought so its best to buy on weakness,” Bate said.
Overbought refers to a situation whereby asset prices have gone up so much over a period of time and may be vulnerable to a pullback.
