MANILA, Philippines - Philippine stocks surged to a new record high yesterday for the 28th time after data showed an improvement in manufacturing from the world’s biggest economies – China and the eurozone.
The Philippine Stock Exhange index (PSEi) climbed 0.71 percent or 38.97 points to finish at a new all-time high of 5,552.34 as investors scooped up banking stocks amid hopes of a new wave of mergers and acquisitions in the industry.
Turnover value amounted to P5.75 billion with a total of 88 advances as against 72 decliners.
Asian markets received a much needed boost from a survey indicating manufacturing activity in China picked up for the first time in more than a year. Preliminary figures showed that China’s PMI was estimated to have risen to 50.4 from 49.5 in October.
“Upbeat expectations on both the listed company and macroeconomic fronts continue to infuse excitement in our investors. Local developments have been able to overshadow ongoing concerns abroad, and this certainly bodes well for the market as we look to end 2012 on a high note,” said PSE chief operating officer Roel A. Refran.
Accord Capital Equities Inc.’s Jun Calaycay said the market’s strength is the “clearest proof of the Philippine bull market despite worries hanging over the collective minds of global investors.”
“The market’s movement is in line with most domestic market watchers and local analysts’ expectations and outlooks published at the beginning of the year. The most conservative estimate, coinciding with the lower end of our own projection, is 5,600,” Calaycay said.
Calaycay said there is a high probability that the market may exceed the firm’s year-end closing projection given the traditionally bullish trading sentiment during the Christmas season.
“It will be a subject of debate, however, whether the market will have enough steam and momentum to carry the index towards the upper limit of our projected band at 5,800,” Calaycay said.