• Stock index may tap new record this week

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    By Madelaine B. Miraflor Reporter

    After attaining a new record in the previous session, it seems that the benchmark Philippine stock index has still some gas  to trade within record levels in the next few days,  as the excitement brought by the recent investment grade score remains.

    A peaceful conclusion to the 2013 mid-term polls will also help boost investor interest
    toward Philippine equities.

    BDO Capital President Ed Francisco said that this week, there is a possibility that the market may surpass another all-time high, given the lack of bad news to spoil the optimism brought by the recent investment grade score to the country.

    “For next week, it’s possible [to break]another record kasi wala namang bad news [because as of now, there’s no bad news that could upset the market],” he said.

    Francisco also said that despite the hard sell within the local stock market, the trend is still relatively healthy.

    Freya Natividad of online brokerage 2TradeAsia.com also said that market participants may indeed re-test highs following the benchmark index attaining its 29th record on Friday.

    “Participants will re-check the PSEi’s [Philippine Stock Exchange index] staying power above the 7,200 level this week, trailing progression from the peaceful conduct of the local and national elections. Most are expected to reposition, ahead of an anticipated rally back to the 7,284 previous high,” she said.

    “Although participation might moderate ahead of [US] Fed officials’ discussion on how aggressive their sequel monthly bond purchases would be, several are skewed on actions that would seize on any temporary lull to accumulate good contenders for 2013 to 2014,” Natividad added.

    On a global perspective, Natividad said that sentiments will remain afloat following regional central bankers’ move to relax key monetary policies, on top of continued support for monthly bond purchases.

    “Advanced economies are largely seen to spur growth this year, and are unlikely to make moves that would stall on this direction. With the added funds flowing into capital markets, fund managers are widely expected to continue their search for higher yielding assets for the long term,” she further said.

    On Friday, the local stock market marched to its 29th all-time high before taking a pause for election day, amid positive corporate earnings and recent investment grade scores.

    Driven by gaming and banking stocks, the benchmark index surged to another record, gaining 0.94 percent, or 67.95 points to close at 7,262.38 on Friday.

    The PSEi has grown by 47 points at 7,262.38, or an increase of 0.65 percent, week on week.

    However, turnover was down by 25.97 percent to P7.53 billion on average, with advancers beating decliners at 78-88. Foreign net buying also went down from P1.02 billion to P458 million.

    For this week, immediate support is 7,200 to 7,230, and resistance 7,280 to 7,350.

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