PHL stocks surge to 3-month high on attractive valuations, bright prospects

By Leslie D. Venzon

MANILA, Feb. 20 (PNA) — The local stock market bucked a regional downtrend and advanced to a three-month high on Thursday, driven by attractive valuations and Philippine economic growth prospects.

Nisha Alicer, head analyst at DA Market Securities Inc., said the market rally was inspired by both local and foreign investors that recognize attractive valuations in Philippine market amid positive fiscal year 2013 earnings results and forward-looking forecasts for 2014 and beyond.

”Investor confidence is being built up again after 2013 decline. Philippine fundamentals have remained intact,” she said.

The barometer Philippine stock exchange index (PSEi) sustained its winning streak for a fifth day and finished 6,352.76 from Wednesday’s 6,294.62.

The PSEi reached the 6,350 level on November 15 when it closed at 6,346.40.

Alicer is optimistic the current market rally can attempt the 6,500 to 6,500 resistance this month.

”JP Morgan put Philippine stocks on overweight, they also issued a positive outlook on Indonesia. So this is a shift in focus from developing (markets) back to emerging (markets),” she noted.

In Thursday’s trading, all counters were in the positive territory, surging 0.29 percent to 1.48 percent.

Volume of transactions reached 2.13 billion shares valued at P9 billion.

Advancers dominated decliners, 90 to 69, while 43 issues were unchanged. (PNA)