MANILA, Philippines - President Aquino expressed elation yesterday over the all-time high performance of local stocks despite warnings of capital flight following last week’s Supreme Court ruling ordering an investigation by the Securities and Exchange Commission of the foreign ownership of shares in Philippine Long Distance Telephone Co. (PLDT).
The Philippine Stock Exchange (PSE) index on Monday rose 69.93 points to a record 4,421.56, surpassing the previous record of 4,397.30 in November.
The PSE said the domestic equity market’s performance in the first half improved over the same period last year, helping set the stage for a favorable second half.
Analysts attributed the bullishness of the stock market to the growing confidence in the Philippines after the country received credit-rating upgrades from credit rating agencies.
“I think two days in a row it has breached a new record. Of course, number one I’m very glad, it’s again a symbol of the confidence of the business community both and foreign and domestic have expressed in the continued growth of our economy. Especially given the turn of events that has happened in the Middle East and Japan, that is really heartwarming,” Aquino told reporters in an ambush interview at the Department of Foreign Affairs, where he spoke for the agency’s 113th anniversary.
Total value turnover for the first half reached P661.81 billion, 28.9% higher than the P513.30 billion registered in the same period last year.
The combined market capitalization of listed issues in the PSE at the end of the first half rose by 33.4% to P8.91 trillion compared with P6.68 trillion a year ago.