Philippine stocks hit all-time high on economy's resiliency

17:25, September 09, 2010      

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The Philippine market zoomed to its all-time high of 3,902.56 on Thursday as investors, afraid to be left behind, scampered for stocks that were trading in the negative during the session.

By end of trading, the bellwether PSEi jumped by as much as 2. 56 percent or 97.78 points to close to its historic high of 3,902. 56. For the year, the market has already posted a gain of 28 percent.

Philippine Stock Exchange President Val Suarez said the positive outlook for the Philippine economy has allowed the local stocks to buck the tepid performance of the overseas markets.

"The PSE index broke new records on the back of robust economic indicators which solidifies the Philippine economic resiliency story," Suarez said.

Trading session was mostly sideways with the market briefly touching a low of 3,802.72--two points lower from Wednesday's close--before surging past the 3,900 level at the final bell.

Buying was mostly across the board with the all-share index finishing 2.11 percent higher, along with the rest of the six subindices with the property sector leading the gain.

Advancers swept decliners 100 to 35 while 49 shares were unchanged. Trading volume grew to 2.16 billion shares worth 6.36 billion pesos (143 million U.S. dollars).

"It is a wild bull on the run. Almost everyone is joining the mad dash to the equities," Astro C. del Castillo, an analyst of First Grade Holdings, Inc., said in an interview.

Justino Calaycay of Accord Capital Equities Corp. said the indications that the market is heading to an "unchartered territory" was evident when the local index broke above the 3,800 mark on Wednesday. This served as the open invitation to erstwhile fence-sitters and cautious money to shed reservations and jump into the equity pool.

"(For now), correction-watchers will have to wait another week to an already extended wait. The evidence was glaringly suggesting the bull. Value turnover have consistently risen,foreign funds have been flowing in and sentiments have remained positive even on days following huge overnight losses in the Dow Jones industrial average index," Calaycay said.

Most stocks in the 30-company index closed higher. Investors bought up Metropolitan Bank and Trust Co., Banco de Oro Unibank, Inc. and property firms Megaworld Corp. and Ayala Land, Inc.

"We continue to be on the look-out however on a possible profit-taking-induced pullback given the extent of the advances. It will be interesting to look at the laggards for a possible catching up since proceeds from profit-taking may likely be channeled to such counters," Calaycay said.



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