Philippine stock market scores new milestone, soars past 6,000

The Philippine Stock Exchange index (PSEi) breached the 6,000 level for the first time ever on Monday, taking many by surprise.

Brokers cheered as the PSEi hit a new all-time soaring 73.46 pts or 1.23% to close at 6,044.91.

This is the fourth time the PSEi scored a new record high in as many trading days in 2013.
April Lee-Tan, COL Financial group research head, attributed the market rally to improvement in general sentiment and liquidity.

“During the second half of 2012, everybody was expecting 2013 to be a very positive year and I guess that is already being reflected in share prices, coupled with liquidity and what has happened in the US, that is what driving the market higher right now,” she told ANC.

However, Lee-Tan said one of the triggers for a possible correction could be the looming fight over the debt ceiling in the US.

“We’re using technical indicators to help us identify the support levels, which is probably around the 5,700 level. As far as developments are concerned, one of the triggers for a possible correction could be the debt ceiling — that it will not be resolved at the last minute or if ever it will be,” she said.

“If you think of the Philippines, since the market has gone up significantly nothing has changed as far as economy is concerned. I hope we will see more surprises in the economy, so we can have some real drivers for the market going up, not only liquidity.”

Last year, the PSEi was one of the best-performing stock markets in the world. The bourse hit 38 record highs in 2012.