Resilience of the Philippine stock market ; Despite numerous global shocks that have caused the Philippine stock market to correct, Below, we enumerate the drivers of our stock market’s continued strength:
1. Trust in the Aquino administration.
President Noynoy Aquino has so far enjoyed high net satisfaction ratings. His administration has not been rocked by any major scandal and his team has so far been focused on improving the country’s fiscal situation.
2. OFW remittances and BPO revenues.
Our GDP has been supported by the steady inflow of OFW remittances which amounted to $18.8B in 2010, equal to 9.4 percent of GDP. BPO revenues, on the other hand, have grown faster than remittances and have likewise contributed to the economy, bringing in ~$8.9B in 2010, equal to ~4.5 percent of GDP. As such, the performance of the consumer and property sectors in our local stock market has been strong.
3. Strong fiscal performance.
With the help of strong OFW remittances and BPO revenues, the Philippine government has delivered a strong fiscal performance. Compared with the same period last year, government revenues for the first five months of 2011 increased by 16.3 percent to P582B while expenditures decreased by 10.7 percent to P591B. This resulted to a 94.1 percent reduction of the budget deficit, bringing it down to P9.5B as of May 2011. Gross International Reserves remained high at $69.9B as of June 2011 while year-to-date Balance of Payments surplus was at $4.8B as of May 2011.
4. Credit rating upgrades.
The strong fiscal performance of the Philippines has driven rating agencies such as S&P, Moody’s and Fitch to upgrade our country’s credit rating. As a result, our country is just one to two upgrades away from attaining investment grade status.
5. Public-private partnerships (PPP). PPP projects for roll-out in 2011 to 2012 are estimated to amount to $2.5B. Anticipation of the PPP has kept stocks such as DMCI Holdings, Metro Pacific Investments and San Miguel Corp. buoyant as they are expected to bag some of the projects in the program.
6. Local M&A – alive and active.
There were a number of M&A events in 1H2011, namely: the pending acquisition of Digitel by PLDT, the Philex and Manila Mining joint venture, the possible Gold Fields and Lepanto Mining joint venture, and SM’s purchase of a 17.9 percent stake in Atlas Mining. The M&A mania has caused many of the stocks involved to reach all-time highs, thereby keeping the Philippine stock market buoyant.
7. Increasing stock market participation from locals.
Local participation in the stock market has been increasing. Government financial institutions took advantage of the market’s swings to increase their exposure to local equities. Local bank UITFs (unit investment trust funds) and Philippine mutual funds have grown to become more active players in the market. Lastly, local retail investors, encouraged by the profits they have made, are becoming more active participants in our market.
8. Strength of metal prices.
Gold reached a record high of $1,594.90 / ounce, while copper and nickel prices continue to be strong. Strong metal prices contributed to the strength of the local mining sector, which has outperformed the rest of the Philippine market.
9. Flow of funds from DM to ASEAN.
ASEAN countries like the Philippines continue to benefit from the influx of foreign funds due to their strong fiscal performance. Like the Philippines, Malaysia and Indonesia’s stock markets recently established new highs. Bangko Sentral ng Pilipinas Governor Amando Tetangco, Jr. even remarked that the flow of foreign funds into ASEAN countries like the Philippines may accelerate in the instance of a US credit rating downgrade. (source http://www.philstar.com)
Showing posts with label philippines stock. Show all posts
Showing posts with label philippines stock. Show all posts
Monday, July 25, 2011
Wednesday, July 13, 2011
philippine stock exchange pse july 14 2011
philippine stock exchange pse july 14 2011 : THE STOCK MARKET extended its rally and closed higher on Thursday. The Philippine Stock Exchange index (PSEi) advanced by 0.44%, or 19.55 points to 4,423.55, while the broader all-share index climbed by 0.31% or 9.42 points to 3,076.01.
Trading volume and value declined to 7.15 billion shares worth P5.26 billion changing hands from yesterday's 8.2 billion shares worth P6.8 billion.
Save for the mining and oil sector, all subindices closed in the green, led by the financial sector which rose by 1.18% or 11.50 points to 987.98, followed by property firms that gained by 0.56% or 8.68 points to 1,555.63.
The service sector also climbed by 0.40% or 6.20 points to 1,556.68 while holding firms notched a 0.21% or 7.67-point upswing. Industrial firms jumped by 0.04% or 3.36 points to 7,524.89.
Mining and oil firms, which led the subindices for three straight days, closed in the red and fell by 0.39% or 85.37 points to 21,925.25. Advances led decliners 76 to 63, while 45 stocks were unchanged.
The PSEi rallied by 1.24% or 53.91 points to 4,404 yesterday, while the broader all-share index advanced by 0.69% or 20.89 points to 3,066.59. -- Franz Jonathan G. de la Fuente
Trading volume and value declined to 7.15 billion shares worth P5.26 billion changing hands from yesterday's 8.2 billion shares worth P6.8 billion.
Save for the mining and oil sector, all subindices closed in the green, led by the financial sector which rose by 1.18% or 11.50 points to 987.98, followed by property firms that gained by 0.56% or 8.68 points to 1,555.63.
The service sector also climbed by 0.40% or 6.20 points to 1,556.68 while holding firms notched a 0.21% or 7.67-point upswing. Industrial firms jumped by 0.04% or 3.36 points to 7,524.89.
Mining and oil firms, which led the subindices for three straight days, closed in the red and fell by 0.39% or 85.37 points to 21,925.25. Advances led decliners 76 to 63, while 45 stocks were unchanged.
The PSEi rallied by 1.24% or 53.91 points to 4,404 yesterday, while the broader all-share index advanced by 0.69% or 20.89 points to 3,066.59. -- Franz Jonathan G. de la Fuente
Tuesday, July 12, 2011
Philippine Stock Exchange index (PSEi) july 13 2011Opening rose
Philippine Stock Exchange index (PSEi) july 13 2011Opening rose: The Philippine Stock Exchange index (PSEi) rose by 0.01% or 0.53 point to 4,350.62, while the broader all-share index increased by 0.008% or 0.23 point to 3,045.93.
Most subindices opened unchanged, namely the mining and oil (21,080.29), holdings (3,554.85), and service (1,539.90) sectors.
Opening in the green were property and industrial firms, climbing by 0.04% or 0.63 point to 1,521.18 and 0.02% or 1.57 points to 7,475.28, respectively.
Meanwhile, the financial subindex opened in the negative, retreating 0.03% or 0.28 point to 961.10. Advancers outpaced decliners 22 to 18, while 17 stocks were unchanged.
The PSEi slipped yesterday by 0.59% or 25.77 points to 4,350.09, while the broader all-share index dropped 0.74% or 22.59 points to 3,045.70
Most subindices opened unchanged, namely the mining and oil (21,080.29), holdings (3,554.85), and service (1,539.90) sectors.
Opening in the green were property and industrial firms, climbing by 0.04% or 0.63 point to 1,521.18 and 0.02% or 1.57 points to 7,475.28, respectively.
Meanwhile, the financial subindex opened in the negative, retreating 0.03% or 0.28 point to 961.10. Advancers outpaced decliners 22 to 18, while 17 stocks were unchanged.
The PSEi slipped yesterday by 0.59% or 25.77 points to 4,350.09, while the broader all-share index dropped 0.74% or 22.59 points to 3,045.70
Sunday, July 10, 2011
Philippine stock market prospect for week july 11 2011
Philippine stock market prospect for week july 11 2011 : Philippine share prices on Friday broke a two-day losing streak as encouraging US economic data prompted investors to pick up energy stocks.
At the Philippine Stock Exchange, the composite index added 15.61 points, or 0.36 percent to 4,391.46, while the broader all-shares rose 6.91 points, or 0.23 percent to 3,070.80.
Gainers beat losers, 81 to 59, while 37 stocks were unchanged. A total of 4.13 billion stocks worth P9.96 billion changed hands.
Local share prices are poised to reach new record highs in the next few days with the dissipation of fears that Europe’s debt crisis would send the world economy into another nosedive.
The main-share Philippine Stock Exchange Index (PSEi) moved above the 4,400 level in early trading on Friday before settling for a gain of 39.83 points, or 0.92 percent, week on week at 4,391.46.
“The impending resolutions to the fiscal and credit crisis in Europe and the US have given sufficient increase in risk-taking,” local brokerage firm Accord Capital Equities said in a report at the end of the week.
The firm said the main index would likely trade within the 4,330-4,440 range for the week.
“Worries of a further slide past earlier indicated support marks have dissipated and the approaching round of earnings roughly two weeks down the line will provide enough fodder to keep interest in equities heightened,” the company said.
Among the strong performers at the end of the week were companies with interests in power generation, led by San Miguel Corp., First Philippine Holdings and Energy Development Corp.
Miners’ Atlas Consolidated Mining and Philex Mining Corp. were also among the top 10 gainers on Friday.
The Dow Jones industrial index on Friday slipped 0.49 percent, nearly wiping out the gains it made the day before, after US government data showed the lowest gain in job figures in nine months.
tag ; philippine stock exchange chart, philippine stock exchange projection, Philippine Stock Exchange prediction july 11 2011, Philippine Stock Exchange forecast july 2011, Philippine Stock Market prediction july 11 2011, Philippine share prices prediction july 11 2011, philippine stock market louisville,
At the Philippine Stock Exchange, the composite index added 15.61 points, or 0.36 percent to 4,391.46, while the broader all-shares rose 6.91 points, or 0.23 percent to 3,070.80.
Gainers beat losers, 81 to 59, while 37 stocks were unchanged. A total of 4.13 billion stocks worth P9.96 billion changed hands.
Local share prices are poised to reach new record highs in the next few days with the dissipation of fears that Europe’s debt crisis would send the world economy into another nosedive.
The main-share Philippine Stock Exchange Index (PSEi) moved above the 4,400 level in early trading on Friday before settling for a gain of 39.83 points, or 0.92 percent, week on week at 4,391.46.
“The impending resolutions to the fiscal and credit crisis in Europe and the US have given sufficient increase in risk-taking,” local brokerage firm Accord Capital Equities said in a report at the end of the week.
The firm said the main index would likely trade within the 4,330-4,440 range for the week.
“Worries of a further slide past earlier indicated support marks have dissipated and the approaching round of earnings roughly two weeks down the line will provide enough fodder to keep interest in equities heightened,” the company said.
Among the strong performers at the end of the week were companies with interests in power generation, led by San Miguel Corp., First Philippine Holdings and Energy Development Corp.
Miners’ Atlas Consolidated Mining and Philex Mining Corp. were also among the top 10 gainers on Friday.
The Dow Jones industrial index on Friday slipped 0.49 percent, nearly wiping out the gains it made the day before, after US government data showed the lowest gain in job figures in nine months.
tag ; philippine stock exchange chart, philippine stock exchange projection, Philippine Stock Exchange prediction july 11 2011, Philippine Stock Exchange forecast july 2011, Philippine Stock Market prediction july 11 2011, Philippine share prices prediction july 11 2011, philippine stock market louisville,
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