Philippine Stock Exchange

http://www.pse.ph/html/STG/index.html
Link connects you to a Stock Trading Game.

As I post this, the Phisix hit the roof with an 80-year high. Yes the highest in 80 years.

Stocks shoot through the roof

By Elizabeth Sanchez-Lacson
Inquirer
Last updated 03:36am (Mla time) 06/15/2007

MANILA, Philippines -- The stock market again hit its highest level in 80 years, boosted by Wall Street’s overnight jump as investors there cheered lower bond yields.

“This is just a knee jerk reaction, more like a sigh of relief to Wall Street’s overnight jump” said Francisco Liboro, president of PCCI Securities Corp. “It also helps that overall outlook remains positive over the long term.”

The Philippine Stock Exchange composite index surged 84.8 points, or 2.39 percent, to 3,628.62, raising the likelihood that the index could hit 3,700 points.

During the day’s trading, the market also posted a new high of 3,633.65. The index’s previous high was recorded on June 4 at 3,622.94.

The broader all-share index gained 43.08 points to 2,304.21.

So far this year, the stock market has gained 646.08 points, or 21.66 percent.

Value turnover was P6.08 billion, with a total of 6.099 billion shares changing hands. Gainers pounded losers, 96 to 32.

“Local bulls were awakened by the overseas market,” said Astro del Castillo, managing director at First Grade Holdings Inc. “Almost all markets were on a run. The market’s all-time high validates our belief that prospects are indeed better. The bulls are trekking uncharted territory. We think the next level is 3,700.”

Analysts earlier expressed concern that rising bond yields in the United States would trigger a possible rate hike by the US Federal Reserve.

“Lower bond yields in the US translate to lower borrowing costs for Philippine corporates that will expand profit margins and boost earnings growth, which is good for stock markets,” said Paul Joseph Garcia, chief investment officer at ING Investment Management. “This is true for Philippine companies who have US debts.”

Del Castillo said that, at home, investors were watching out for developments in the fiscal reforms front after disappointing first quarter figures. “The only thing that will turn away the bulls is poor fiscal collection of government for another quarter,” he said.

In the first quarter of the year, the Bureau of Internal Revenue collected P143 billion in taxes, falling short of the P155 billion set as target by the government for the three-month period.

This resulted in a budget deficit of P52 billion, exceeding the target limit of P45.8 billion.

The international credit rating agency Moody’s Investors Service said Philippine economic policy had yet to translate its initial successes in fiscal consolidation to improved underlying performance in the economy.

“Effective tax administration and prudent expenditure policies are needed for the ... stability of the country’s finances,” it said.

In its annual report, Moody’s said the “B1” foreign- and local-currency government bond ratings on the country reflect its relatively high sovereign debt burden, leaving government finances and external accounts vulnerable to shocks.

However, Moody’s said progress in revenue reform and fiscal consolidation support a stable ratings outlook, and that the balance of payments is supported by a flexible exchange rate policy, stable export production base, sizable remittance inflows from overseas workers, and increasing foreign direct investment. With Agence France-Presse, and INQUIRER.net


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