February 20, 2013

Philippine Stocks Reached 6,648.57 - New Record


New record has been set in local stocks on Wednesday. The Philippine Stock Exchange index has added another 27.85 points or 0.42% to 6,648.57. A new record. A new all-time high of 6,690 was also hit from a one day trade.

Juanis Barredo, chief technical analyst at COL Financial said "The market is currently overbought and we’ll be running into this problem for most of the year, resulting in P/E (price to earnings ratio) expansion." But he added that there was still be a possible upward momentum as Philippine stock Exchange index remained above short-term support levels of 6,478 and 6,385.

On Wednesday, SM-related stocks traded briskly on news that the group was studying a proposal from investment bankers to merge property businesses to create the biggest property player in the country. By folding residential property arm SMDC and SM Land into property flagship SM Prime, the group is seen creating a full-range property firm that can withstand economic cycles.

Among SM stocks, SMDC posted the sharpest gain (+3.87 percent) while SMIC (+0.7 percent) and SM Prime (+1.14 percent) gained at a more modest pace.

AGI (+3.88 percent) also aided the PSEi’s rise.  Property arm Megaworld (+0.26 percent), announced Wednesday the doubling of an investment plan for a township project in Mactan, Cebu, to P20 billion over a seven-year period.

Other stocks that contributed to the day’s upswing were Jollibee (+1.22 percent), PLDT (+1.12 percent), AEV (+0.95 percent), EDC (+0.82 percent) and ALI (+0.63 percent).— Doris C. Dumlao