MANILA, Philippines – Foreigners flocked to the local equities market, as the Philippine Stock Exchange index (PSEi) rose by a fifth, making it Asia’s biggest gainer in the first half of the year.
Preliminary data from the local bourse showed that foreign investors were net buyers of Philippine listed stocks in the amount of P71.12 billion, 382.30 percent higher than the P14.75 billion a year ago.
The PSEi rallied to set all-time highs 19 times to ﬁnish at the 5,246.41 level at end-June, 955.20 points higher than its 4,291.21 close the year before.
“Just like our main index, investor conﬁdence in Philippines, Inc. is at an all-time high. What’s remarkable is that we have been able to achieve unprecedented growth even in the midst of ongoing uncertainties in the Western hemisphere and a cooling Chinese economy,” said Hans Sicat, PSE president and chief executive.
“This is a testament to the effectiveness of the reforms that the country has undertaken, which further contributed to the
stable macroeconomic environment,“ he added.
On July 5, the PSEi rewrote record levels again to reach a new high of 5,369.98. As of July 6, the PSEi has gained 22.7 percent to become the top performing market in Asia, beating bourses in Singapore, Indonesia, Malaysia, Thailand, Vietnam, Hong Kong, India and China, among others.
The combined market capitalization of listed issues in the PSE during the January to June period expanded by 12.8 percent to P10.05 trillion from P8.91 trillion a year ago.
Total value turnover grew by 43.20 percent to P947.73 billion this year from P661.81 billion in 2011.
Average daily value turnover stood at P7.64 billion, an increase of 45.5 percent year-on-year.
All sectoral indices rode on the strength of the market and finished in the green with the financials index emerging as the best performer in the first half after advancing by 34.6 percent.
This was followed by the property index at 30.1 percent and holding firms subsector at 28.1 percent. The industrial index rose by 10.8 percent, the services index by 8.8 percent and the mining and oil by 4.8 percent.
“The market’s run in the first half has been nothing short of historic, and there’s a good chance that we will be able to extend this forward momentum as we anticipate better first half earnings from our listed firms. The latest sovereign credit rating upgrade also provides additional support for future growth so overall, I think we are in a terrific position to keep on improving,“ Sicat said. (InterAksyon.com)