MANILA, Philippines - Philippine stocks opened the week strong as the Philippine Stock Exchange index (PSEi) breached the 6,400 level for the first time.
The main index was up 2% to 6,447.31 during morning trade on Monday.
Among the gainers in the morning session were property companies Ayala Land, SM Development Corp. and Robinsons Land Corp.
Jonas Ravelas, chief market strategist of Banco de Oro, says the market is upbeat as investors want to start the Chinese New Year on a positive note.
He added the market rally can be sustained if the government increases spending on infrastructure.
"The most important thing that could sustain the Philippine story and eventually the investor sentiment in the market is that we get to see a lot more stories of continued government spending, particularly on infrastructure, the main highlights to show competitiveness. Right now the government has improved its fiscal position with the increase in revenues from sin taxes. The deficit is not an issue now. Their funding costs are low, we're at historic lows for interest rates. Inflation appears to be managed. What we really need now is infrastructure," Ravelas told ANC.
Ravelas said he now expects the PSEi to next test the 6,500 level. - With ANC