PSEi climbs to 36th record high on foreign buying
The PSEi on Friday hit the 36th record high, closing a few points shy of the 5,800 mark, as foreign investments continued to pour into the market.
It gained 0.53 percent or 30.56 points to close at 5,794.2 points – its 36th record high year-to- date – while the broader all-share index rose 0.35% or 12.86 points to 3,716.46.
More than P4.080 billion shares valued at P8.667 billion were traded. But there were more losers than gainers at 89 to 74, while 47 stocks were unchanged.
"Essentially, what's on-going on is increased inflows of portfolio investments," said James Lago, head of reasearch at PCCI Securities Brokers Group.
Investors "who have maxed-out profits" in other markets went to the local bourse in search of better yields, Lago noted.
"They're moving some money out of China, India and Indonesia," he said.
Lago added that he expects a slight correction when trading resumes on Monday.
"Inflation in November, which has reached an eight-month low reaffirms the positive outlook on interest rates which also augurs well for the stock market," PSE president and CEO Hans Sicat said in a statement.
"Inflation in November, which has reached an eight-month low reaffirms the positive outlook on interest rates which also augurs well for the stock market," PSE president and CEO Hans Sicat said in a statement.
Benign inflation, which slowed to 2.8 percent in November, provided a springboard for stocks to climb its latest all-time high on Thursday, after taking a breather a day earlier.
Investors in search of higher returns have flocked into emerging markets amid sluggish growth in advanced economies.
This, has resulted in the PSEi being mostly bullish for most of the year. — VS, GMA News
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