PSEi reaches 7th record high for 2013
Buoyed by the possibility of a less stringent
foreign ownership rule, Philippine stocks on Monday rallied to the seventh
record high for the year.
PSEi closed up 0.70 percent to a new all-time
high of 6,093.90 points, topping the record of 6091.18 last Wednesday.
Last year, the PSEi posted 38 record
highs.
The broader all-shares index also closed
higher by 0.53 percent to 3,837.14.
All subindices were in the green, led by
financials that rose 1.53 percent and property that went up by 1.48
percent.
Over 3.8 billion shares were traded at P9.3
billion. Gainers edged up against losers 94 to 71, while 44 stocks were
unchanged.
“It's just the market reacting to the SEC
announcement on foreign ownership,” PAPA Securities Corp. analyst Krizia
Syquiatco said.
SEC chairperson Teresita Herbosa last week
announced that the Supreme Court clarified its controversial ruling that
redefined “capital” to refer to voting shares and not the total outstanding
capital stock of companies.
Such concrete definition of capital may pave
way for the regulator to abandon a plan limiting foreign ownership based on each
class of shares.
PSE president Hans Sicat last week said the
SEC statement helped stop the downtrend.
Investors welcomed such developments to mean
“that we're more open for foreign investors to come in,” Syquiatco noted.
She noted that the market is bound to go into
a short-term downtrend on profit-taking, saying there were market sellers lined
up during the afternoon session on Monday after the market showed some strength
during the morning session when the PSEi reached 6,114.44 points.
“At that point profit-taking ensued,”
Syquiatco said.
First Grade Finance Inc. managing director
Astro del Castillo said, “The market is ripe for a correction.” — VS, GMA News
No comments:
Post a Comment