Oct 062017

The Philippines is one of the best performing stock markets in Asia, after breaking new record highs two times this week.

On Tuesday, the PSEi finished at a fresh record high of 8,312.93. On Wednesday, the benchmark index scaled new heights surpassing the previous day’s high to close at 8,344.05.

The investor euphoria continued throughout the week as the benchmark Philippine Stock Exchange index soared to an intra-day record above the 8,400 mark on Friday but at end of the trading day closed at 8,310.88.

Philippine stocks are rising due to several factors – investors are taking their cue from upbeat US economic data and record highs on Wall Street. Investors continue to remain bullish about the prospects of the Philippine economy, expectations of a tax overhaul and government’s plan to liberalize foreign ownership restrictions in highly regulated industries is further bringing good tidings to the market.

The local stock barometer gained by another 31.12 points, surpassing Tuesday’s record high of 8,312.93.

The proposed tax reform measures include expanding the value-added tax base, raising excise taxes on fuel and automobiles, and slap levies on sugar-sweetened beverages will add billions of pesos into the government’s coffers.
On growth, the government has set a full year growth target of 6.5 percent to 7.5 percent for 2017. The local economy accelerated 6.5 percent in the second quarter, mainly due to higher government spending, strong domestic demand, and increased farm output.
Local stocks are being led by financial, industrial, services, holding companies and mining issues.

VC Securities president Wilhemino Agregado said the PSEi would likely end at around 8,500 this year, adding that many investors were now positioning for the local stock barometer to reach 10,000 by next year.

The post Philippine stock market surges to new all-time high this week appeared first on Good News Pilipinas.

Apr 192014
SEC reminds companies on financial reporting

MANILA, Philippines – The country’s corporate watchdog has reminded companies to comply with the strict rules on financial reporting obligations. In a public notice, the Securities and Exchange Commission (SEC) said the board of directors and management of registered corporations are required to strictly observe their responsibilities over the preparation and submission of their annual financial statements. “The Commission firmly believes that it has set sufficient regulations and has actively conducted administrative actions towards a change in the old culture in financial reporting that incorrectly allowed external auditors to prepare and review the financial statements at the same time,” said SEC chairperson Teresita J. Herbosa. Corporations and external auditors must strictly observe their respective responsibilities over financial statements, Herbosa said, adding that appropriate penalties will be imposed on erring entities. Listed firms are required to submit quarterly and annual financial reports to the SEC and the Philippine Stock Exchange. Under the Securities Regulation Code, companies’ financial statements are primarily the responsibility of their respective management. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “The board of directors reviews and approves the financial statements before these are submitted to the stockholders,” SEC said. SEC said that during the independent examination of the financial statements, the management should provide the external auditor with the complete set of financial statements. “In order to have an independent review of the financial statements prepared by the management, the external auditor must not create a template format of financial statements for mere accomplishment by the Read More …

Mar 022014
Profit taking seen happening this week

MANILA, Philippines – Episodes of profit taking are expected to mark this trading week, a development that will allow the benchmark index to create a stronger base prior to testing the 6,500 level. Investors are advised to selectively accumulate stocks particularly during profit-taking driven pullbacks, analysts said. “We expect the local equities market to trade within range this week, but with a downward bias as investors try to book profits made from the recent rally,” BPI Asset Management said in a market report. It pegged the trading range at 6,350 to 6,550. “Given its sudden surge in the 6,400 level, we expect a minor pullback as the stocks are already at overbought levels,” Abbygayle M. Estrella, an analyst at AB Capital Securities Inc. For Grace Cerdenia, an analyst at brokerage firm 2Trade-Asia.com, the main index is poised to traverse the 6,500 mark, albeit on a more modest tone. Astro del Castillo, managing director of First Grade Finance Inc., said a healthy correction is in the offing following the strong performance of the stock market last week. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Week-on-week, the Philippine Stock Exchange index rallied 1.85 percent or 116.63 points to 6,424.99, marking its third straight weekly gain. It is also the highest closing of the main index since ending at 6,436.49 on Nov. 7, 2013. Investors cheered strong local corporate earnings and the US Federal Reserve chair Janet Yellen’s assurance of gradual tapering.BPI Asset Management said foreign investors are beginning to turn Read More …

Dec 102013
Phl bourse slumps on fears over US Fed tapering

MANILA, Philippines  (Xinhua) – The Philippine stock market slipped below the 6,000-level over fears that the US Federal Reserve would cut its stimulus program. The bellwether Philippine Stock Exchange index dived by 2.04 percent, or 122.54 points, to 5,886.40, while the broader all- share index lost 1.85 percent, or 68.22 points, to 3,612.58. Trading volume reached 633.93 million shares worth P7 billion ($159.06 million) with 124 stocks declining, 31 advancing, and 36 were unchanged. All six counters were down. “At this point, nothing appears able to spur confidence in equities with the index sustaining further declines,” analyst Justino Calaycay of Accord Capital Equities Corp. said in his daily stock market comment. Calaycay said not even the 16,000-level of the Dow Jones could entice investors who are balancing the timing of the Fed’s tapering on one hand and the oncoming budget talks on the other. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The analyst noted that he had already warned that a reduction in the US stimulus program is inevitable, but he said the question on everyone’s mind is when such reduction will be effected. Nevertheless, 2TradeAsia.com said separately that the recent drop might attract some investors to the battered issues. Stocks in the 30-company index were mostly down. These include Ayala Corp., Banco de Oro Unibank, Inc., and Megaworld Corp.

Nov 252013
Phl bourse maintains losing streak

MANILA, Philippines (Xinhua) – The Philippine stock market retreated for the sixth time toMonday as investors continued to unload their shares over fears that the local equities market’s fortune has been reversed. The bellwether Philippine Stock Exchange index is threatening to break below the 6,000-level after shedding another 1.32 percent, or 80.58 points, on Monday to settle at 6,004.26. Similarly, the all-share index retreated by 0.97 percent, or 35.96 points, to 3, 681.67. Trading volume reached 552.94 million shares worth P7.16 billion ($163.4 million) with 92 stocks declining, 64 advancing, and 28 were unchanged. Of the six counters, only the financials and the mining and oil sectors bucked the trend. “The conviction that pushed the market to 31 fresh all-time records in the first five months of the year has completely evaporated and fears that the bull-market has probably reached a point of reversal begins to spread,” said analyst Justino Calaycay of Accord Capital Equities Corp. The analyst noted that the composite index is just a couple hundred points above the 2012 close and any further drops will wipe out all the year’s gains. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Calaycay said there is an increasing number of “unbelievers” and that any further slide will pull down the index to the 5,812. 73-mark. This, he said, will strengthen the bears’ claims. On the other hand, a recovery that restores the index to at least between the 6, 200-6,300 range should lend some credence to the bull’s proposition Read More …

Nov 212013
Phl bourse tumbles on concerns over US economic stimulus

MANILA, Philippines (Xinhua) – The Philippine stock market further retreated below the 6,200-level today over concerns that the United States might soon taper its economic stimulus. The bellwether Philippine Stock Exchange index lost 0.53 percent or 32.45 points to 6,122.89, while the broader all-share index fell by 0.70 percent or 26.50 points to 3,737.18. Trading volume reached 853.18 million shares worth P8.54 billion ($196.06 million) with 123 stocks declining, 34 advancing and 41 were unchanged. Of the six counters, only the industrial and the holding firm sectors bucked the trend. “Weakness continue to prevail, following indications of tapering plans in the US,” brokerage 2TradeAsia.com said in its daily stock market comment.   Investors are worried that the US Federal Reserves might soon go slow on its $85-billion a month asset purchase program following signs of recovery in the labor market. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 This caused major currencies to slide and the Dow Jones to close Wednesday’s session 66.21 points lower. 2TradeAsia.com advises investors to spot for good trading windows in second-tier shares that have breached “oversold zones.” Stocks in the 30-company index were mostly down. Among those sold out were Ayala Land, Inc., Alliance Global Group, Inc. and heavyweight Philippine Long Distance Telephone Co.    

Nov 182013
Bourse slides on profit-taking

MANILA, Philippines (Xinhua) – Lacking incentive to entice more investors to place their money in the stock market, the local equities closed today’s session in the negative. The bellwether Philippine Stock Exchange index lost 0.05 percent or 3.15 points to 6,343.25, while the broader all-share index retreated by 0.11 percent or 4.14 points to 3,864.86. Trading volume reached 539 million shares worth P6.52 billion ($149.76 million) with 74 stocks declining, 61 advancing and 50 were unchanged. Of the six counters, only the holding firm sector bucked the trend. “Although buyers have surfaced in time to stave off a drop below 6,200 last week, lifting the equities remains heavy as rallies are soon enough capped by profit-taking,” analyst Justino Calaycay of Accord Capital Equities Corp. said. The analyst said not even the positive outcome of trading sessions in neighboring Asian countries and China’s decision to implement broad-based reforms could prevent profit-taking among investors. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Local shares joined the cheer but continued to meet stiff resistance from sellers, capping the advance and even threatening to send the measure back in the red. Deep into the afternoon session, the bulls finally caved in to the pressure, allowing the bears to take the day,” Calaycay said. The composite index in fact went up to as high as 6,386.62 or 40 points higher from Friday’s close before profit takers dominated the session. The bellwether touched an intra-day low of 6,324.24 on Monday. In the meantime, Calaycay said Read More …

Aug 042013
ETF launch comes at opportune time

MANILA, Philippines – The launch of the Exchange-Traded Funds (ETFs) this year comes at a time when investor confidence is high given the stock market’s ascent and the investment grade rating for the Philippines. The timely launch of the new investment product is expected to result in more investors participating in the local capital market, industry experts said. “While we wanted to roll this out earlier, we’re pleased that it is happening this time when the robust economy serves as a backdrop to launch these types of investment products,” said Philippine Stock Exchange president and CEO Hans Sicat. “The launch of the ETF is exceptionally timely. This instrument will improve financial intermediation which is one of the hallmarks of long-term economic development,” said National Treasurer Rosalia de Leon. For ETF expert Robert Tull Jr., the current momentum of the stock market serves as a good backdrop for the introduction of ETFs. “It’s always positive when investors see the equity markets up. Another value is that the Philippines has moved to investment grade rating now, which builds a lot of investor confidence,” Tull said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Tull, CEO of consultancy firm Robert Tull & Co., has played a leading role in the design and development of more than 300 ETF products in the past 20 years. ETFs are securities and investment instruments that monitor a commodity of assets like an index fund but trades like a normal stock in an exchange. Last month, the Read More …

Jul 182013
Phl stocks bounce back to 6,600 level on US market gains

MANILA, Philippine (Xinhua) – Investors repositioned themselves in the local equities today sending the local index rallying back to the 6,600 level. The bellwether Philippine Stock Exchange index jumped by 1.12 percent or 73.63 points to 6,648.35. The broader all-share index rose by 1.11 percent or 44.47 points to 4,051.34.Trading volume reached 2.35 billion shares worth P7.43 billion ($170.96 million) with 109 stocks advancing, 35 declining, and 46 unchanged. All six counters were up. Online brokerage 2TradeAsia.com said the lack of leads locally and overseas might have motivated some investors to seek guidance to the performance of the Dow Jones industrial average index on Wednesday. Dow Jones was up by 18.67 points ahead of US Federal Reserve Ben Bernake’s statement. The US Fed’s statement is among the most awaited development as it would give investors hint on the next move of the US “The spotlight might revert to institutional fund managers’ reaction to Fed chief Bernanke’s statement before the US Congress, specifically on indications as to when they would slow on their earlier planned $80 billion per month bond purchase plan,” 2TradeAsia.com said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Analyst Justino Calaycay of Accord Capital Equities Corp. said in his daily stock market comment that since the local index hit the low of 5,789.06, it has drawn a “higher high, higher low pattern in the succeeding 15 sessions.” The narrowing gap between the resistance line and support line, he said, indicates that investors are quick to withdraw Read More …

Jul 182013
BSP to study US impact on local economy ahead of policy meeting

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) will consider how the dovish statements from the United States Federal Reserve will impact on local growth and inflation outlooks as it sets policy next week, its top official said on Thursday. “We will consider the impact of the Fed guidance, market sentiment and actual flow of funds on global and domestic growth and inflation dynamics,” BSP Governor Amando Tetangco, Jr. said in a text message to reporters. On Wednesday night, US Fed Chairman Ben Bernanke told American congressmen that the $85-billion bond buying program, initially thought to be coming to an end, is “not on a preset course,” suggesting it could keep policy accommodative. Over the past month, Asian financial markets, including those from the Philippines, suffered huge losses after the world’s superpower indicated it could taper off cheap money from its quantitative easing “later this year” on signs of recovery. With the latest statement, Tetangco said the US Fed is trying to help investors digest its next move and “hopefully markets will be more circumspect this time around” before making any bets.  Thus, investors, he said, are expected “not to place or extend large one way bets” which “often create their own stages for panic by overshooting before and after the fact.” Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Last month, the Philippine Stock Exchange index dropped by as large as 6.5 percent, while the peso weakened toward the 44-peso mark versus the dollar. They have since Read More …