PSEi breaches 6,600 level 

(Updated 12:36 p.m.) Philippine shares on Tuesday sustained a rally to a new intra-day record, with the benchmark PSEi breaching the uncharted 6,600 level for the first time as investors cautiously bought selected blue chips. 

 

The PSEi ended the morning trade at 6,626.76 up 61.53 points or 0.94 percent. 

 

The benchmark index broke the 6,600 level at 6,600.69 at 11:08 a.m. and hit an intraday high of 6,627.63, according to the Philippine Stock Exchange's online Market Information. 

 

The broader all-shares index ended the morning session up 21.03 points or 0.51 percent to 4,140.98.

 

Most indices were in the green, except for and mining and oil sector. 

 

"Most investors are still cautious because Philippine stocks are expensive... There is still cautious buying in select issues," said Claire Quiray, analyst at Regina Capital Development Corporation and president of the Stock Market School, a market education initiative of the PSE. 

 

Quiray noted that the  price-to-earnings ratio is at over 20 times, meaning investors are now paying 20 times more for every peso of future earnings. 

 

"Since we're expensive compared to other regional markets, what investors are looking for are strong fundamentals," she said. 

 

Quiray noted the blue chips are still heavily bought and continue to sustain the uptrend as investors look forward to 2013 earnings. 

 

Ayala Land Inc. (ALI), Ayala Corporation (AC), Manila Electric Company (MER), and BDO Unibank Inc. (BDO) continue to drive the index higher, she added. 

 

For the all-shares index, Quiray said new comer Philippine Business Bank (PBB) provided the steam. 

 

Shares of PBB, which debuted on Tuesday, were already up 15.56 percent in the morning trade at P36.4 apiece from its introductory price of P31.5. 

 

"Expectations of investment grade rating also provided boost of some non-index shares," said Quiray. 

 

The analyst and stock market educator sees a 6,200 support for the market. — VS, GMA News