Philippine market outperforming Asian peers – PSE

PHILIPPINE share prices set a new all-time high for the third consecutive day in anticipation of better-than-expected corporate earnings. At the Philippine Stock Exchange (PSE), the local composite index rose 15.44 points, or 0.35 percent to 4,397.3, just less than three points shy of the 4,400 mark. The broader all-shares index added 17.13 points, or 0.62 percent to 2,794.96.

Gainers beat losers, 71 to 63, while 45 stocks were unchanged. A total of 1.72 billion stocks worth P4.83 billion changed hands.

“Investors continue to position themselves on companies that are expected to announce rosy earnings,” said Astro del Castillo of First Grade Holdings.

Year-to-date, the PSEi is now the best performing market in Asia, recording an aggregate gain of 1,329.19 points or 45.3 percent to surpass the growth of the markets in Indonesia and Thailand, Val Antonio Suarez, PSE president and chief executive officer, said.

“Aside from sound fundamentals, our market also continues to benefit from the general optimism by foreign investors towards Asian economies. Foreign investors accounted for about 50 percent of today’s trade values.” Suarez said.

The news on possible terror attacks also failed to dampen investor sentiment.

“The market took it with a grain of salt,” del Castillo said.

Investors also cheered the plan of the US Federal Reserve to buy $600 billion in government bonds, higher than the market consensus. The Dow Jones industrial average gained 26.41 points, or 0.24 percent to 11,215.13.

“Some emerging economies will be forced to intervene in markets to curb gains in their currencies, fearing it will make exports less competitive and stunt economic growth,” said AB Capital Securities Inc.

AB Capital sees immediate resistance at 4,500, while support will be at 4,300. –KRISTA ANGELA M. MONTEALEGRE, Manila Times