Another first: PSEi breaks 7,100 level
MANILA, Philippines (3rd UPDATE) - Philippine stocks broke the 7,000 and 7,100 marks for the first time on Monday, April 22, hitting their 27th all-time high.
The key Philippine Stock Exchange index (PSEi) surged 2.35% or 163.38 points to settle at 7,120.48, a fresh record close and intraday peak.
The PSEi's previous record-high close of 6,957.10 was registered on Friday, April 19.
Strong corporate earnings results continued to fuel investor interest in Philippine stocks -- already "expensive" for some, but "not yet overvalued," according to others.
The PSEi last flirted with the 7,000 barrier on April 1, the first trading day after the Philippines won its first investment grade from international debt watcher Fitch. That day, the index hit an intraday peak of 6,956.92, then retreated to 6,839.59 at close due to profit taking.
The PSEi's new record close was not a surprise. Analysts had expected it to surpass 7,000 this week as investors positioned themselves for the earnings season.
Among the first that announced rosy earnings were Sy-led BDO Unibank and Pangilinan-led Meralco.
BDO said its earnings for the first quarter of 2013 reached P10 billion, a whopping and surprising 257% increase from the P2.8 billion it posted in the first quarter of 2012.
Meralco also reported its first-quarter net income grew 19.3% to P4 billion on lower cost and expenses and higher energy sales volume.
President Benigno Aquino III earlier told an audience in Switzerland he was confident the local stock market would hit 7,000 in 2013. He touted the record highs achieved by the bourse as vote of confidence on the Philippine economy.
"This stands as a manifestation of continued confidence in the prospects of our economy, not only from the international community, but also from Filipinos who are raising their stake in our country’s success," Malacañang said in a statement on Monday afternoon.
"This is but one among many indicators of a resurgent Philippines. We must now ensure that our progress is sustained, and even accelerated," it added.
On Monday, 2.49 billion shares valued at P11.14 billion were traded. Foreign buying and selling reached P6.28 billion and P5.66 billion, respectively. - Rappler.com