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Philippine stocks rose to a record. Ayala Land Inc. and
SM Investments Corp. led the advance on speculation
rising money supply will boost demand for equities.
Money
supply growth accelerated to 26.3 percent in April, on
higher remittances from overseas nationals, exports and
investments, according to the central bank said. It was
the fifth month money supply expanded more than 20
percent.
“When
there’s more money in the system, it finds its way to
banks,” said Marvin Fausto, who helps manage $3.5
billion at Banco de Oro-EPCI Inc. “Because deposit rates
are very low, it will trickle into investments, into the
stock market Liquidity is pushing this market.”
The
Philippine Stock Exchange index rose 672.68, or 2.1
percent, to 3547.35 at the noon close Friday, topping
the previous record set May 22. In the broader market,
gainers outnumbered losers 90 to 25. The benchmark has
gained 3.1 percent this week.
Ayala Land,
the nation’s largest developer, climbed P1.25, or 8.1
percent, to P16.75 pesos. SM Investments, owner of the
nation’s largest retail and shopping-mall companies,
advanced P22.50, or 5.5 percent, to P430.
The
central bank also kept its key interest rate unchanged.
Earlier Thursday, the government said economic growth
picked up to 6.9 percent in the first quarter, exceeding
economists’ expectations and boosting stocks 2.2
percent.
“If
that’s sustained, it will be good for stocks,” Fausto
said. “If the government is not curtailed in spending,
the focus will be on construction, cement, property and
bank stocks. It will trickle down to consumer stocks
maybe toward the latter part” of the year.
--Bloomberg
*****
STOCK MARKET OUTLOOK
By Honey Madrilejos-Reyes
Reporter
LAST
WEEK:
The
market rose to record highs last week as strong economic
data and easing US interest rate concerns pushed share
prices higher. The benchmark PSE index ended Friday’s
trading at 3,547.35 versus 3,441.76 a week earlier.
THIS
WEEK:
Market experts say that trading could take off on
another lively beat, supported mainly by spillover
buying on the
Philippines’
improved economic growth prospects this year.
“Follow-through support would likely be prevalent in
large-cap stocks, specifically those involved in
property, banking, as well as power/energy. TEL ADR’s
$1.54/share overnight improvement might also provide the
lift, with all eyes fixed on the PSEi’s ability to
trounce 3,600,” according to 2TradeAsia in its weekly
outlook report.
For his
part, Jose Vistan, head of research at AB Capital
Securities, said the market could experience a technical
correction.
“It will
be healthy for the market to correct after last week’s
wild run up. In addition to the risks presented by a
possible Chinese sell off again, some technical
indicators suggest that the market is overbought. We
remain bullish on the long-term outlook, but investors
should expect a near-term consolidation,” Vistan said.
STOCKS
TO WATCH:
2Trade Asia said the stories to look forward to include
privatization blocks, among which are MER, SMC, PNB,
PNOC and the Power Sector Assets & Liabilities
Management’s power generation & transmission sale and
infra-related undertakings.
Prospective trading opportunities will also be
considered in second- and third-liner shares, especially
those that have started their foray into mining, oil
exploration and
greenfield
energy projects. |
