The PSEi on Tuesday hit record high anew, closing beyond the 5,800 mark for the first time, lifted by strong foreign buying.
The PSEi climbed by 1.29 percent or 73.96 points to close at 5,831.5
points – the 37th record high in the year-to-date – while the broader
all-share index rose 0.87 percent or 32.31 points to 3,728.7 points.
Nearly 5.84 billion shares valued at P7.08 billion were traded.
Gainers outnumbered losers at 87 to 83, while 47 stocks were unchanged.
“The increase in the local bourse was mainly because of liquidity and
optimism for next year,” said Astro del Castillo, managing director at
First Grade Finance Inc.
Del Castillo said foreign fund managers “are already positioning for next year” on the back of rosy earnings prospects.
Foreign funds have placed a “premium on the Philippines” due to the
strong economic growth posted in the third quarter, said Angping &
Associates Securities research head Juan Rafael Supangco.
While most stocks are “a little too expensive,” Del Castillo said “it's a given due to the liquidity of the market.
“Other markets in Asia are also increasing, but the Philippine Stock Exchange is leading regional markets,” he noted.
The PSEi is the strongest in the region gaining over 37 percent
year-to-date, followed by Jakarta's Bursa Efek and Bangkok's SET which
have so far soared by 28 percent and 15 percent, respectively, Supangco
added.
On reports that the local bourse is
overpriced, Supangco said, “If you just look at the valuation, cheaper
talaga yung ibang countries. I think... (fund managers are) putting a
premium on growth.
“The prospects for the
Philippines is good. In terms of valuation, [listed] companies are
already reflecting their 2013 value [in their current price],” he
added.
Supangco noted that the “stock market is always forward looking. Investors look towards the future.”
Both analysts, however, expect a slight correction within the coming days before heading its way toward the 5,900 mark.
The PSEi took a breather Monday as investors cashed in on gains,
following the last record high at 5,794.2 points posted on Friday. — VS, GMA News
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