PH stock market skyrockets to new record high

MANILA, Philippines—Local stocks skyrocketed to an all-time high on Monday as investors loaded up on equities given positive tidings from the resolution of the Greek crisis and an optimistic outlook for the second half of 2011.

The main-share Philippine Stock Exchange (PSE) index surged by 69.93 points or 1.6 percent to finish at 4,421.56.

Drawing momentum from last Friday’s breakout past a critical barrier at 4,340, the index surpassed the 4,414 previous record high in early November last year to carve a new peak.

An upbeat trading on Wall Street on Friday likewise added to the bullish sentiment.

Also on Friday, the Dow Jones Industrial Index rallied by 168.43 points or 1.36 percent to finish at 12,582.77 on news that Greece had successfully passed in its Parliament the belt-tightening measures required to execute a bailout package.

At the local market, index heavyweight PLDT was back on the game on hopes that the Securities and Exchange Commission would soon be able to address uncertainties on the telco’s foreign ownership structure.

Value turnover was heavy at P7.28 billion, suggesting conviction to run-up to a new record high.  There were nearly three gainers for every single decliner.

Apart from PLDT, Metrobank, AGI, San Miguel, Atlas, EDC, PNB, Philex, BPI, Megaworld, ICTSI, FLI, Aboitiz Power, URC, RLC, Petron, BDO, Metro Pacific Investments and Ayala Land edged higher.

PNB, which was among the day’s top gainers, rose by 6.17 percent on news that Chinese banking giant was in talks with principal shareholder Lucio Tan to come in a strategic investor in Allied Bank in exchange for the opportunity to expand distribution network in mainland China. PNB expects to resolve the stumbling blocks to its planned merger with Allied Bank within this year.

Petron continued to sizzle on expectations that the oil company may undertake a secondary shares offering soon to comply with the minimum public float at the PSE. Parent firm San Miguel also continued to benefit from brisk trading.

Atlas, on the other hand, was buoyant on news that SM Investments had approved an equity investment in the mining firm, bringing tycoon Henry Sy’s total equity position (including the shares held by Banco de Oro) to about a fifth of total stocks.