Index posts gains in H1; sets new record high in July

MANILA, Philippines - The Philippine Stock Exchange index (PSEi) set a new record high yesterday after the stock market reflected the gains from the Asian and US markets.

The PSEi surged 69.93 points or 1.61 percent to close at 4,421.56. This is the market’s new all-time high after its previous high of 4,397.30 recorded last Nov. 4, 2010. 

Value turnover reached P7.29 billion with 19,173 executed trades. Foreign investors were net buyers at P619.82 million.

“US and Asian markets appeared to have received a boost from good news at the end of last week, particularly a possible resolution of the Greece debt problem and strong economic data from the US,” PSE president and chief executive officer Hans B. Sicat said.

The PSEi advanced by 2.14 percent or 90.07 points to end at 4291.21 as of June 30, 2011.

“Trading appears mixed during the second quarter but recently picked up due to investor confidence-boosting news provided by the country’s recent ratings upgrades from international ratings agencies,” Sicat said.

Total value turnover for the first half reached P661.81 bilion, 28.9 percent 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 percent to P8.91 trillion compared with P6.68 trillion in the same period last year.

 Preliminary figures also show that foreign investors went into net buying territory during the first half in the amount of P14.75 billion from P15.75 billion in the same period last year.

“Uncertainties abroad, particularly the Euro zone’s ongoing debt crisis and China’s declining exports, kept some of our foreign investors on the sidelines,” Sicat said.

Total capital raised was P62.59 billion for the January to June period due largely to the initial public offering of Megawide Construction Corp., follow-on offerings of San Miguel Pure Foods Co., Inc. (PF) and San Miguel Corp. (SMC), stock rights offerings of SM Development Corp. (SMDC), Metropolitan Bank & Trust Company (MBT), & Robinsons Land Corp. (RLC), and private placement of Banco de Oro Unibank Inc. (BDO). This was an improvement over the P38.98 billion raised in the first half of 2010.