Philippines stock index hits new record high

MANILA, Philippines—The local stock index broke to a new record high on Tuesday as yield-seeking investors loaded up on blue chips in anticipation of good prospects for corporate earnings in a low-interest rate environment this 2012.

The main-share Philippine Stock Exchange index gained 19.48 points, or 0.43 percent, to close at a new record high of 4,561.08. This exceeded the previous record close of 4,550 posted on Aug. 1, 2011.

Tuesday’s upswing was led by the property counter, which surged by 1.17 percent.

Value turnover amounted to P6.26 billion. There were 100 advancers that edged out 57 decliners while 42 stocks were unchanged.

Investors snapped up shares of PLDT, Metrobank, AGI, Ayala Corp., EDC, Philex, Globe, DMCI, ICTSI, URC, ALI, Metro Pacific Investments, BPI, RLC, Aboitiz Power, First Gen and Megaworld. PNB was likewise higher in active trade.

On the other hand, there was profit-taking on BDO and Lepanto “A” (open only to local investors).

Bede Lovell Gomez, assistant vice president at First Metro Investment Corp., said that after outperforming most regional markets in 2011, the local bourse would likely perform even better this year and target the 5,000 mark by yearend.

Gomez said strong investor appetite on the local stock market was being driven by low interest rates, manageable inflation, implementation of infrastructure spending under the public-private partnership framework, a potential credit rating upgrade and bright prospects for tourism.

“Our theme for 2012 will focus on infrastructure, gaming and consumer sector,” Gomez said.