MANILA, Philippines - The Philippine Stock Exchange index (PSEi) started the week on a high note, breaching the 6,100 level for the first time in history on Monday morning.
The PSEi closed the morning session at 6,114.44, up 1.04% or 62 points. The main index first touched the 6,100 level at 10:47 a.m. hitting 6,101.80, up 0.83% or 50 points.
An analyst from 2TradeAsia sees the PSEi reaching the 6,500 level in the near term.
"Conservatively we are looking at 6,500 in the near term, this is expected to be supported by the robust economic growth which we see around 6 to 7% as well as benign inflation rate at 3.5 to 4%. Other factors include improved corporate and government spending, as well as election spending within the first half," Freya Natividad, 2TradeAsia analyst, told ANC.
As for her sectoral picks for 2013, Natividad said broadcasting companies are likely to benefit from the political spending expected in the first half due to the May midterm elections.
"We're also seeing infrastructure firms as this would be boosted by PPP projects by the government. Another is the banking sector given the improvement in the NPL ratio as well as robust lending activities which we see around 10-15%... Gaming is also a favorite this year, given select firms are opening in Entertainment City," she said.