Philippine stocks ends at all-time high for second successive day
Shares on the Philippine Stock Exchange closed at all-time high levels for the second successive trading day Monday, buoyed by foreign funds and expectations of higher government spending.
The market is taking its cue from the latest data on deficit, and it looks like government has “started its spending mode,” said Jonathan Ravelas, chief market strategist of BDO Unibank.
Government spending will continue to improve this year, said Budget Secretary Florencio Abad in briefing Monday, noting that the Aquino administration is drumming up spending to boost the economy.
“Investors took this as a signal to still buy stocks,” said Ravelas.
The main PSE index advanced 14.28 points or 0.29 percent to close at 5,030.58.
Over 5.011 billion shares valued at P5.506 billion were traded during the morning and afternoon sessions.
Winners outpaced losers 92 to 71, with 40 issues closing unchanged.
The PSEi closed at an all-time high Friday, breaching the elusive 5,000 mark to close 77.69 points higher at 5,016.30 on P7.08-B value turnover.
Despite signs of a correction in global equities and commodities markets, foreign investors are still, finding this market attractive, said Erico Claudio, market strategist at Pentacapital Investment Corp.
While the technical signals are saying that the market is not about to make a correction, the valuation of Philippine shares at current levels “are sensitive to exogenous factors,” Claudio noted.
Overseas markets aren’t really pulling back from recent gains, but seem to be weakening and topping off their highs, so investors continue to go for this emerging market, he added.
Many who have been on the sidelines waiting for a correction were forced to take positions, seeing that there are no real negative news, said trader Jasper Jimenez of BDO Securities Inc.
Tradition investors — the conservative ones — are also coming into the market. “It’s like the bandwagon effect,” Jimenez noted.
They may not be directly taking positions, but a lot of them are joining equity funds where the risk may be higher than money market placements but the yields are still predictable, according to the trader.
“And this is also feeding market liquidity,” he added. — GMA News
The market is taking its cue from the latest data on deficit, and it looks like government has “started its spending mode,” said Jonathan Ravelas, chief market strategist of BDO Unibank.
Government spending will continue to improve this year, said Budget Secretary Florencio Abad in briefing Monday, noting that the Aquino administration is drumming up spending to boost the economy.
“Investors took this as a signal to still buy stocks,” said Ravelas.
The main PSE index advanced 14.28 points or 0.29 percent to close at 5,030.58.
Over 5.011 billion shares valued at P5.506 billion were traded during the morning and afternoon sessions.
Winners outpaced losers 92 to 71, with 40 issues closing unchanged.
The PSEi closed at an all-time high Friday, breaching the elusive 5,000 mark to close 77.69 points higher at 5,016.30 on P7.08-B value turnover.
Despite signs of a correction in global equities and commodities markets, foreign investors are still, finding this market attractive, said Erico Claudio, market strategist at Pentacapital Investment Corp.
While the technical signals are saying that the market is not about to make a correction, the valuation of Philippine shares at current levels “are sensitive to exogenous factors,” Claudio noted.
Overseas markets aren’t really pulling back from recent gains, but seem to be weakening and topping off their highs, so investors continue to go for this emerging market, he added.
Many who have been on the sidelines waiting for a correction were forced to take positions, seeing that there are no real negative news, said trader Jasper Jimenez of BDO Securities Inc.
Tradition investors — the conservative ones — are also coming into the market. “It’s like the bandwagon effect,” Jimenez noted.
They may not be directly taking positions, but a lot of them are joining equity funds where the risk may be higher than money market placements but the yields are still predictable, according to the trader.
“And this is also feeding market liquidity,” he added. — GMA News
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