PH stocks hit another high

Local stocks marked new record highs breaching 6,100 in intra-day trade yesterday as good prospects for the domestic and global economies this 2013 boosted investors’ risk appetite.

The main-share Philippine Stock Exchange index hit as high as 6,115.18 before closing at 6,093.90 yesterday, adding 42.15 points or 0.7 percent from Friday’s finish. This was the 7th record finish for the index this year and 68th record during the term of President Aquino.

All counters were up but the biggest increase was posted by the cyclical financial and property counters, which respectively jumped by 1.53 percent and 1.48 percent on good economic prospects for 2013.

Online stock brokerage 2TradeAsia.com said the conservative target for the PSEi would be at 6,500 within the near term. “Any dips should provide entry points, given the gauge’s near oversold levels. Monitor downward movements, especially near 5,600-level,” it said.

forecast

This upbeat forecast by 2TradeAsia.com is backed by an expected acceleration in economic growth.

“From an estimated 6.5 percent gross domestic product (GDP) growth for 2012, the economy will continue to be supported in 2013 by services (54.4 percent of GDP in 2011), specifically for trade, real estate, transportation, storage and communication sub-components,” the brokerage said in its outlook for 2013.

“The wildcard would still be on agriculture (12.3 percent of GDP), which is subject to volatile weather conditions. For the demand side, improved household and government spending would help fuel expansion to 7-8 percent for 2013, especially with local elections in the initial semester of the year. Consumer spending will be aided by moderate inflation, plus influx of overseas Filipino worker remittances,” it said.

Manny Cruz, chief strategist at the AsiaSec Equities Inc. said the surge to another new high might have been precipitated by an ongoing roadshow for ASEAN (Association of Southeast Asian Nations) bourses.  /INQUIRER