PHL stocks up 1% on positive sentiment overseas
Philippine stocks rose higher in active trading Monday, driven by the strength of markets overseas.
“Asian shares rose on Monday with sentiment brightening at the start of the third quarter after European leaders agreed to shore up the region's troubled banks…” according to Reuters.
The pronouncements of European leaders, particularly German Chancellor Angela Merkel, to help the euro zone’s ailing banks propped up market sentiment, said Ramon Torres, head of UCPB Trust Group portfolio management.
Euro zone leaders agreed on Friday to let their rescue fund inject aid directly into stricken banks from next year and intervene on bond markets to support troubled member states, Reuters said in the same report.
“Today, we see the local bourse to react positively to the recent developments in Europe (i.e. agreement of the EU leaders to help the region’s struggling banks),” First Metro Securities Brokerage Corp. research analyst Ghia Yuson said in the firm’s emailed commentary.
“While there may be signs of progress, it only dissipates near-term uncertainty. We remain to be cautious as the devil may be in the details,” Yuson added.
The main Philippine Stock Exchange index rose 53.83 points or 1.03 percent to 5,300.240.
More than 2.588 billion shares valued at P6.575 billion were traded.
Winners led losers 108 to 65, with 39 issues unchanged.
“The PSEi broke out of an upward channel and seems poised to make new highs. However, the indicators suggest overbought levels,” according to First Metro Securities.
“The PSEi has gained 21 percent in the year-to-date, and if you look at the technicals it’s overbought, and I wouldn’t be surprised if profit-taking sets in,” said Torres of UCPB Trust Group.
At 18 times 2012 earnings – at these levels –Philippine shares are one of the most expensive issues in the region, Torres noted.
But analysts are saying Philippine stocks are not that expensive at this point, if you consider the fundamentals, he added.
While the market is susceptible to profit-taking, it will also depend on what happens tonight in the US and European market, said Torres.
PSEi support is at 5,200 while resistance is at 5,500, according to FMSBC. — GMA News
“Asian shares rose on Monday with sentiment brightening at the start of the third quarter after European leaders agreed to shore up the region's troubled banks…” according to Reuters.
The pronouncements of European leaders, particularly German Chancellor Angela Merkel, to help the euro zone’s ailing banks propped up market sentiment, said Ramon Torres, head of UCPB Trust Group portfolio management.
Euro zone leaders agreed on Friday to let their rescue fund inject aid directly into stricken banks from next year and intervene on bond markets to support troubled member states, Reuters said in the same report.
“Today, we see the local bourse to react positively to the recent developments in Europe (i.e. agreement of the EU leaders to help the region’s struggling banks),” First Metro Securities Brokerage Corp. research analyst Ghia Yuson said in the firm’s emailed commentary.
“While there may be signs of progress, it only dissipates near-term uncertainty. We remain to be cautious as the devil may be in the details,” Yuson added.
The main Philippine Stock Exchange index rose 53.83 points or 1.03 percent to 5,300.240.
More than 2.588 billion shares valued at P6.575 billion were traded.
Winners led losers 108 to 65, with 39 issues unchanged.
“The PSEi broke out of an upward channel and seems poised to make new highs. However, the indicators suggest overbought levels,” according to First Metro Securities.
“The PSEi has gained 21 percent in the year-to-date, and if you look at the technicals it’s overbought, and I wouldn’t be surprised if profit-taking sets in,” said Torres of UCPB Trust Group.
At 18 times 2012 earnings – at these levels –Philippine shares are one of the most expensive issues in the region, Torres noted.
But analysts are saying Philippine stocks are not that expensive at this point, if you consider the fundamentals, he added.
While the market is susceptible to profit-taking, it will also depend on what happens tonight in the US and European market, said Torres.
PSEi support is at 5,200 while resistance is at 5,500, according to FMSBC. — GMA News
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