MANILA, Philippines (4TH UPDATE) - The Philippine Stock Exchange index (PSEi) closed above the 6,000 level for the first time in the country's history on Monday. The PSEi closed at 6,044.91, up 1.23% or 73 points.
|A sign at the Philippine Stock Exchange reads, "more fun at 6,000," as the PSE index breached the 6,000 level for the first time. Photo courtesy of the Philippine Stock Exchange Inc.
This is the fourth time the PSEi set a new record high in the first four trading days of 2013.
Brokers cheered as the PSEi breached the 6,000 level for the first time, hitting 6,001.17 at 9:40 a.m.
April Lee-Tan, COL Financials research head, attributed the market rally to improvement in general sentiment and liquidity.
"During the second half of 2012, everybody was expecting 2013 to be a very positive year and I guess that is already being reflected in share prices, coupled with liquidity and what has happened in the US, that is what driving the market higher right now," she told ANC.
However, Lee-Tan said one of the triggers for a possible correction could be the looming fight over the debt ceiling in the US.
"We're using technical indicators to help us identify the support levels, which is probably around the 5,700 level. As far as developments are concerned, one of the triggers for a possible correction could be the debt ceiling that it will not be resolved at the last minute, if ever it will be," she said.
"If you think of the Philippines, since the market has gone up significantly, nothing has changed as far as economy is concerned. I hope we will see more surprises in the economy, so we can have some real drivers for the market going up, not only liquidity."
More fun at 6,000
PSE President and Chief Executive Officer Hans B. Sicat said the market is expected to set more new records in 2013.
"We are very proud to have reached and breached the 6,000 level which affirm that market liquidity continues to be strong and investor sentiment remain positive over good news both locally and abroad. We also believe that corporate earnings will remain strong for the full year of 2012, which should support the market's phenomenal performance. Indeed it is more fun at 6,000 and we look forward to setting new records this year," he said.
The Palace expressed hope the stock market's rally will be sustained.
"This record-breaking advance is reflective of sustained investor confidence in the local bourse and is an indicator of the bullishness and vibrancy of the Philippine economy. The strong performance of the PSEi is a validation of the Aquino administration’s bold reforms and tireless commitment to good governance that has resulted in growth that we continue to ensure is more inclusive and equitable for our countrymen," Deputy Presidential Spokesperson Abigail Valte said.
Last year, the PSEi was one of the best-performing stock markets in the world. The bourse set 38 record highs in 2012. - With report from Warren de Guzman, ANC