Monday, 23 August 2010

Foreign buyers sustain local stocks rally

Manila Bulletin

The prices of Philippine Stock Exchange (PSE) shares rallied as the stock market continues to chalk up gains as the local economy’s resilience gain stronger interest from foreign investors.

The PSE said its shares rallied by P11 or 3.9 percent to end at P295 per share last Friday, buoyed by its recent positive earnings. This was the fourth straight day that the shares have posted gains of a total of P37 or 14.3 percent.

In a disclosure to the Securities and Exchange Commission, the PSE said its net income soared 91 percent to P148.3 million in the first six months due to higher listing and trading-related revenues and lower operating expenses.

“We are pleased with our share performance which has mirrored the rally in the index. We believe that our share performance reflects investor optimism on our growth story,” PSE president Val Antonio B. Suarez said.

The PSE index also closed at 3,593.60, up 33.21 points or 0.93 percent with value turnover at P4.93 billion. This was the index’s highest finish since January 3, 2008 when it closed at 3,501.38. Year to date, the index has increased by 540.92 points or 17.7 percent.

Suarez reiterated the country’s economic resilience as mirrored by the positive stock market performance.

He noted that the favorable economic backdrop and the positive outlook of investors on emerging economies such as the Philippines present bright prospects for the stock market.

He noted that as the crisis bottomed out, the stock market rebounded strongly. The volume of trades in the market jumped by 32.5 percent as the daily turnover for the first half of the year stood at P4.2 billion from P3.2 billion in the same period last year.

Sustained buying interest from foreign investors was also evident as the net foreign buying doubled to P15.8 billion in the first half from P8.3 billion in the same period last year.

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