Foreign buying, positive sentiment buoy PHL stocks to all-time high
Shares on the Philippine Stock Exchange closed the week at an all-time high Friday, buoyed by foreign buying and positive sentiment on the domestic front.
The market sentiment remains driven by corporate developments, particularly the impending merger of Bank of the Philippine Islands (BPI) and Philippine National Bank (PNB), said Arlysa Narciso, equity analyst at AB Capital Securities Inc.
BPI is buying a majority stake in PNB that will create the largest bank in the country in terms of assets of than P1.2 trillion.
This development augurs the possibility more mergers and acquisitions, said Narciso.
Early this week, analysts said the consolidation of corporate assets would strengthen the capital base of banks and companies.
“Foreign funds were more of the net buyers this week,” Narciso noted, saying foreign buying is now more diversified across large- and mid-cap issues because of the positive outlook for 2013.
The main PSEi rose 38.97 points or 0.71 percent to close at 5,552.34.
Friday’s closing numbers surpassed the November 21 record close at 5,534.18.
More than 1.900 billion shares valued at P5.750 billion were traded.
Gainers led losers 88 to 72, with 51 issues unchanged.
Supporting the backdrop of a stable political landscape and positive economic outlook, investors also factored in the legislation of the sin tax measure that would translate into additional revenues for the government next year, Narciso noted.
“Year-to-date, the PSEi has broken through new record highs for a total of 28 times,” the PSE noted in a statement Friday.
"Upbeat expectations on both the listed company and macroeconomic fronts continue to infuse excitement in our investors,” said PSE chief operating officer Roel A. Refran.
“Local developments have been able to overshadow ongoing concerns abroad, and this certainly bodes well for the market as we look to end 2012 on a high note," he added.— TJD, GMA News
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