Growth prospects take stocks to new heights

Bourse also marks new intraday peak of 5,451.96

THE COUNTRY’S stocks index yesterday surged to a new high, with the trading day’s peak breaching the 5,450 mark, powered by a fresh wave of foreign buying among investors upbeat on the country’s growth prospects.

The Philippine Stock Exchange index rallied by 68.22 points, or 1.27 percent, to close at an all-time high of 5,443.74. A new intraday peak of 5,451.96 was likewise marked. The index last reached the 5,400 level in early July.

The upswing was led by conglomerates as foreign investors snapped up shares of tycoon Henry Sy’s SM Investments, which climbed by 5.99 percent.

“A lot of foreign funds want to buy SMbecause that’s how they can get into the Philippine consumer market. That’s the biggest play for the consumer market,” said Wilson Sy of Philequity Management Inc.

The surge in liquidity, Sy said, was due to the US Federal Reserve’s third round of quantitative easing (QE3)—a bond buyback scheme to boost liquidity without having to slash further the already near-zero interest rate in the US.

Value turnover at the local stock market amounted to P8.33 billion. There were 103 advancers against 63 decliners, while 37 stocks were unchanged.

Apart from SM, investors also snapped up shares of Ayala Corp., Meralco, Ayala Land and JG Summit. PLDT, Metrobank, Megaworld, EDC, SM Prime and AEV also contributed some

gains.

“We continue to benefit from stable macroeconomic fundamentals which have augured well for businesses in the country. Such growth expectations should further keep the Philippine stock market in the radar of global investors,” PSE president Hans B. Sicat said.