PHL shares breach record high on ‘strong optimism’
Philippine shares trekked higher in active trading Thursday, carried by a “strong optimism” among market players that 2011 would be a banner year for corporate earnings.
The optimism is also fueled by the perceived strength of Wall Street, “causing local shares to trek higher,” said Jonathan Ravelas, market strategist at BDO Universal Bank.
The Philippine Stock Exchange (PSE) index surged 106.44 points or 2.25 percent to close at 4,822.08, breaching the record 4,747.90 the market achieved on Jan. 20.
“There is a strong optimism on full 2011 earnings, helping keep shares on the upbeat, especially with expectations of another rate cut,” said Ravelas, adding that a new round of interest rate cuts, which makes the cost of funds cheaper, would be good for corporations.
Regional markets also performed well.
“Asian shares rose on Thursday as encouraging manufacturing data soothed fears about the global economic fallout from the euro zone debt crisis… MSCI's broadest index of Asia-Pacific shares outside Japan climbed as much as 1.4 percent to a five-month high of 438.674, with Australia and China leading the gains, according to a Reuters report.
On the PSE, more than 8.337 billion shares valued at P18.155 billion were traded.
Winners led losers 109 to 57 with 41 issues closing unchanged.
“Wall Street stocks rallied after a report showed that US manufacturing activity grew at its strongest pace in seven months in January, shrugging off data suggesting Europe is struggling with fallout from its festering debt crisis,” Reuters noted in a separate report.
“The Dow Jones industrial average closed up 83.55 points, or 0.66 percent, at 12,716.46,” Reuters added.
It was a blend of positive sentiments, starting with Wall Street overnight, said Freya Natividad, head of research at F. Yap Securities Inc.
The employment figures for the Philippines last year was also good, she said, noting that the manufacturing numbers for the US, China and India also gave the market the momentum its deserves.
“If the market is able to keep up with this momentum, I think, we are looking at 5,000 [on the PSE index] short-term… possibly within the first quarter, if the momentum is upheld, Natividad noted. — TJD, GMA News
The optimism is also fueled by the perceived strength of Wall Street, “causing local shares to trek higher,” said Jonathan Ravelas, market strategist at BDO Universal Bank.
The Philippine Stock Exchange (PSE) index surged 106.44 points or 2.25 percent to close at 4,822.08, breaching the record 4,747.90 the market achieved on Jan. 20.
“There is a strong optimism on full 2011 earnings, helping keep shares on the upbeat, especially with expectations of another rate cut,” said Ravelas, adding that a new round of interest rate cuts, which makes the cost of funds cheaper, would be good for corporations.
Regional markets also performed well.
“Asian shares rose on Thursday as encouraging manufacturing data soothed fears about the global economic fallout from the euro zone debt crisis… MSCI's broadest index of Asia-Pacific shares outside Japan climbed as much as 1.4 percent to a five-month high of 438.674, with Australia and China leading the gains, according to a Reuters report.
On the PSE, more than 8.337 billion shares valued at P18.155 billion were traded.
Winners led losers 109 to 57 with 41 issues closing unchanged.
“Wall Street stocks rallied after a report showed that US manufacturing activity grew at its strongest pace in seven months in January, shrugging off data suggesting Europe is struggling with fallout from its festering debt crisis,” Reuters noted in a separate report.
“The Dow Jones industrial average closed up 83.55 points, or 0.66 percent, at 12,716.46,” Reuters added.
It was a blend of positive sentiments, starting with Wall Street overnight, said Freya Natividad, head of research at F. Yap Securities Inc.
The employment figures for the Philippines last year was also good, she said, noting that the manufacturing numbers for the US, China and India also gave the market the momentum its deserves.
“If the market is able to keep up with this momentum, I think, we are looking at 5,000 [on the PSE index] short-term… possibly within the first quarter, if the momentum is upheld, Natividad noted. — TJD, GMA News
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