Phl stocks surge to new heights; index hits 4,749.90

MANILA, Philippines - Bulls continued their rampage at the local stock market, pushing the main composite index to another record high for a third day in a row yesterday as investors brim with confidence over prospects for domestic economic growth.

The Philippine Stock Exchange index (PSEi) surged 47.53 points to close at a new all-time high at 4,747.9 as investors gobbled up shares of Philippine Long Distance Telephone Co., Ayala Corp. and Ayala Land.

Shares of the telecom giant hit a 52-week high of P2,872 per share prior to closing at P2,868 apiece. PLDT hit an all-time high of over P3,000 in 2007.

 Market capitalization rose 1.4 percent or P125.38 billion to a total of P9 trillion in the past four days of the rally.

Markets worldwide have rallied since the start of the year, bolstered by upbeat earnings from US banks and expectations Greece may be nearing a vital debt-swap deal.

“Despite trading in technically overbought territory, the market continues to push higher, driven by the lack of negative news to compel a liquidation even as we head into an extended weekend,” said Jun Calaycay of Accord Capital Equities.

The PSEi rewrote historic highs for the fifth time in the last nine days, Calaycay noted, saying that the central bank’s largely expected rate cut pushed property issues up.

Calaycay said easing concerns over the euro zone debt problem have also spurred a lot of buying. Encouraging demand for government bond offerings in Europe boosted market sentiment with France and Spain together selling around $16 billion worth of debt. The successful auctions showed investors were becoming less nervous about the euro zones’ ability to refinance debts.

CLSA’s Alfred Dy said gains will continue on optimism that ratings companies will upgrade the country’s debt and the government will accelerate implementation of infrastructure projects.

Dy said the Philippines will likely be upgraded after Indonesia. On Thursday, Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr. expressed confidence that the Philippines will get a similar credit rating upgrade after Moody’s Investors Service raised the credit rating of Indonesia.

Property, banking and mining stocks gained on Friday, led by Robinson’s Land, Banco de Oro, Philex Mining and Ayala Corp.

PAL Holdings and San Miguel rose after PAL president Jaime Bautista reiterated the airline needs funds for refleeting, even as he said he is not aware of talks between owner Lucio Tan and possible investors.