Friday, February 8, 2013

Philippine stocks making profits

Philippine stocks continued its bull run on Tuesday, rising by 0.68 percent, and breaching for the first time the 6,200-point level, on good corporate earnings prospects and forecasts for stronger growth for the local economy.

The bellwether Philippine Stock Exchange index (PSEi) edged higher by 42.31 points to 6,234.73 from Monday's 6,192.42. This was the index 11th record close this year.

The broader All Shares index also advanced 0.69 percent or 27.08 points to 3,929.26.

"It's corporate earnings season. Corporate earnings results encourage further buying. Market players are very optimistic," said First Grade Holdings managing director Astro del Castillo in an interview.

Del Castillo said credit rating firm Moody's high economic growth projection for the Philippines is also boosting the performance of the local bourse. The rating firm believes that the Philippine economy grew 6.5 percent in the fourth quarter of 2012.

Government economic managers also projected that the economy posted 6.5 percent in the last quarter, bringing the average gross domestic product (GDP) at over 6 percent in 2012. The country will release the official figures on Thursday.

"There could be more record highs for the week depending on news in the local and foreign markets," Del Castillo added.

Tuesday's rally was mainly led by property sector that rose 1.37 percent to 2,478.53; industrial counter that increased 0.90 percent to 9,425.76; and holding firms sector that edged higher by 0.87 points to 5,506.21.

The sub-indices of services, mining and oil and financials counters posted moderate gains.

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