PSEi surges to record high for 5th straight day


Posted at Jan 08 2013 04:46 PM | Updated as of Jan 09 2013 07:04 AM

MANILA, Philippines - The Philippine Stock Exchange index set a new record close again on Tuesday, the the fifth time in the first five trading days of 2013.

The PSEi extended its winning streak, closing closed at the 6,048.90 level, up 0.07%. The index also hit a new intraday record of 6,055.42.

Advancers beat decliners 85 to 78. Among the day's gainers, SM Investments, which rose 1.73%; First Philippine Holdings, which jumped 3.3% and Energy Development Corp., which is also up 2.6%.

Philex Petroleum Corp. was one of the day's biggest gainers, closing 10% higher on news reports that China is open to joint exploration of oil and gas reserves in the West Philippine Sea.

Shares of Philippine Long Distance Telephone Co (PLDT) dropped after a newspaper report said Lazard Asset Management LLC is mulling the sale of its PLDT shares over the proposed changes on foreign ownership rules for Philippine companies. PLDT closed 0.60% lower.

Meanwhile, the Philippine peso gained 4 centavos to close at P40.85 against the US dollar.


Peso gains

Meanwhile, the Philippine peso gained 4 centavos to close at P40.85 against the US dollar. 

The Philippine peso gained as local banks were looking to buy it on expectations of further stock inflows and on demand linked to remittances from overseas workers. 

Investors stayed cautious over potential central bank intervention, but the peso is still in a bullish trend, dealers and analysts said. 

The central bank's measures such as putting limits on banks' non-deliverable forwards (NDFs) exposure and keeping foreign funds out of its short-term special deposit accounts are temporarily slow inflows, they added. 

In addition, the drop in one-year dollar/peso forwards  to nearly zero suggests offshore investors are shovelling in more funds on the country's strong economic fundamentals. 

"The peso is still pretty much in a range, especially after stocks  broke 6,000 yesterday," said a foreign bank dealer in Manila, referring to the country's main stock index. 

"But dollar/peso feels heavy on the upside as a lot of players are still looking to sell the rallies," the dealer said, adding the peso is seen heading to 40.70 per dollar by the end of January. - With ANC and Reuters