Philippine stocks rally to close in on new record level
MANILA, Philippines—Most local stocks rallied on Monday, lifting the main index back to 4,500 and closer to an all-time high, as investors loaded up on blue chips given rosier prospects for the rest of 2012.
The main-share Philippine Stock Exchange index gained 58.24 points, or around 1.3 percent, to finish at 4,541.60. Shrugging off the anemic week opening of some other markets in the region, the local stock barometer is now nearing its record-high close of 4,550 on Aug. 1, 2011.
“The beauty of the Philippines is shining through,” said Manny Lisbona, deputy chief of PNB Securities. “The market’s strong performance so far is evidence of growing optimism in Philippine fundamentals as well as that for emerging markets in general.”
Corporate earnings in the country are widely expected to rise by a double-digit level in 2012, boosted by strong liquidity as well as the fiscal and monetary stimulus. The government is widely expected to boost spending this year while the central bank is expected to cut interest rates given a benign inflation environment.
The day’s outperformer was the financial sector, which gained by 2.46 percent but all counters edged higher. Value turnover amounted to P5.16 billion. There were 101 advancers, which eclipsed 61 decliners, while 42 stocks were unchanged.
Investors loaded up on a mix of blue chips, second-liners and third-liner stocks. The stocks that rose in heavy volume were PLDT, Lepanto A (for local investors) and B (for all), Metrobank, BDO, URC, Philex, AGI, SMC, PNB, ALI, NiHao, Security Bank, BPI and AEV.
On the other hand, there was profit-taking on DMCI, Digitel, AC, EDC and Globe Telecom.
Dealers said the local market still had a strong momentum despite rising risk aversion overseas. With prospects of local interest rates declining this year, cash-awash investors are looking for better yields.
Across the globe, however, sentiment has turned cautious as investors refocused on the European Union’s woes.
