Philippine Stocks exchange breaches the 4,000 mark and is at its all time high!

Happy days are here again! The Philippine Stock Exchange trading floors are once again filled with shouts of cheers.

Brokers, traders and stock market investors have a lot to be jubilant about. Most stocks listed in the Philippine Stock Exchange is about to breach their all time highs, or is either trading above their all time high. Just last week the Philippine stock exchange Index (PSEi) has breached its all time high. The highest historic figure for the PSEi was on Oct. 19, 2007 which closed at 3,819.75.

The Philippine Stock Exchange Composite Index or PSEi, which used to be called as the PHISIX is a fixed basket of 30 listed common stocks. It serves as a general indicator of the overall performance of the Philippine Stock Exchange. Most companies listed in the PSEi are classified as “blue chip” companies.

Just last week, the PSEi breached its all time 2007 high. It closed at an unexpected 3,902.56 on September 9, 2010. It was indeed a historic moment for the Philippine Stock Exchange.

Earlier this year, Majority of analyst were projecting that the PSEi would reach 3,800 to 4,000 only be end of the year and about 4,500 by 2011.

More bullish analyst such as the CLSA Asia-Pacific Markets technical analysts has boldly announced that Philippine stocks are about to enter into a “golden era.” According to them the present movements of the Philippine Stock Exchange signals the end of the “secular bear markets” which is similar to that in South Korea from 1989 to 2005, Indonesia from 1990 to 2004, India from 1992 to 2004, Singapore from 1994 to 2006, and the U.S. from 1966 to 1982. Since then, the benchmark indexes in the five countries mentioned have rallied at least 51 percent and posted gains of as much as 282 percent.

The end of the “secular bear market” could be an indication that the Philippine stock market is entering a new long-term bull market phase. According to them, a “conclusive” breakout above 3,896 could take the PSEi to 6,752 “in the years to come.”

It would seem that the CLSA Asia-Pacific Market analyst are not alone in their conclusions, the Macquarie Group, a global provider of banking, financial, advisory, investment and funds-management services is convinced that the Philippine stock market is at the starting point of a massive bull market. According to their analyst, the benchmark index will reach 3,900 in the “near term” as economic expansion and earnings growth 23 percent this year which will push Philippine stocks into a “massive bull market.”

JP Morgan also expects the PSEi to reach 4,550 by December 2011.  According to them, the Philippine equity market is a consensus underweight. The market especially foreign equity investors, has not appreciated the country’s reduced risk profile.

Because most foreign fund manager has currently an underweight position in Philippine stocks and because of the strong prospects of the Philippine economy and the strong performance of most listed Philippine companies, a lot of foreign fund managers are now on a buying spree on the Philippine stock market. Bloomberg reports that net foreign buying already reached $427 million year-to-date which is already above the net $419 million for 2009. Since August 2010, net foreign buying amounted to P13.97 billion. Value traded in the Philippine Stock Exchange has also surged to about P7 billion as compared to the average of only 2 to 3 billion.

The PSEi closed today, September 16, 2010 at  4,005.46.

Related News

Investors in Philippine stocks more than “1.64 trillion richer” as of year to date as PSEi breaches 4,100 mark


With an impressive 32.81 percent year-to-date as of September 22, 2010, the Philippine Stock Exchange (PSE) has ranked first among its Asian indices followed closely by the stock markets of Indonesia and Thailand. “The growth in the indices for the period has generated wealth for Philippine stock market investors wo [...]

US Airline stocks drop, as crude oil prices soar highest since 2008


The Airline stocks in the US dropped hard and this is due to high price of crude oil, which went up to more than $112 per barrel, apparently the first time since 2008. As reported at Bloomberg on Saturday, April 9, 2011, United Continental Holdings Inc. and AMR Corporation are only among those airlines parent with s [...]

Philippine Stock Market weekly updates – September 27 to October 1, 2010


The best is yet to come.  The Philippine Stock Exchange Index (PSEi) made another record breaking high again this week. Closing strong at a high of 4,122.83 last Monday, September 27 it was followed by the highest recorded so far on Tuesday with the index inching up at 4,123.95. The expected correction came about i [...]

Company Stock Buybacks: First for Warren Buffett’s Berkshire Hathway



Warren Buffett, one of the world's richest man, announced on September 26, 2011 that he will buyback for the first time stocks of his company Berkshire Hathaway, as reported by various international news sites. Berkshire Hathaway Inc. Image Credit: slidervilla.com Warren Buffett believed stocks of Berkshire Hath [...]

Mark Zuckerberg is Time Magazine’s Person of the Year 2010



Credit: TIME Magazine Facebook founder and CEO Mark Elliot Zuckerberg has been named Time Magazine's 2010 Person Of The Year. According to an article in Time Magazine , the 26-year-old founder of Facebook gets the award for "connecting more than half a billion people and mapping the social relations a [...]

Meet the Mark Zuckerberg who is not a Facebook fan



Facebook founder Mark Zuckerberg is undeniably one of the popular human beings in the planet these days. From his 500 million friends in Facebook, to his controversial film The Social Network, up to his latest $100 million donation for child’s education that he announced in Oprah. And who among us do not know t [...]

Smallpox Virus Destruction Controversy: WHO Decides Verdict on May



Smallpox Virus Image Credit: humanillnesses.com The destruction of the last existing smallpox virus will be decided on by the World Health Organization (WHO) this May 2011. The group supporting for its destruction says that the existing samples could cause the re-emergence of the disease by deliberately misusing t [...]

Winklevoss Twins Lose Court Battle against Facebook Founder Mark Zuckerberg



Winklevoss Twins Image Credit: digitaltrends.com The Winklevoss twins, Cameron and Tyler, lost a battle in court against Facebook founder Mark Zuckerberg. The twins claimed that in 2008, they were misinformed about Facebook’s value. This was reported by US news sites, April 11, 2011. During that past settleme [...]

Donna Gregor Steals $1M From Mark Twain House and Museum



Donna Gregor admitted in Bridgeport, Connecticut that she took $1 million from the Mark Twain House and Museum, according to reports by several international news sites on Friday, August 5, 2011. Mark Twain House Credit: The Mark Twain House & Museum The 58-year-old woman is a long time employee of the Ma [...]

PSE bomb threat forced suspension of trading


The PSE Tower One building on Ayala Avenue received a bomb threat that prompted the stoppage of trading at the Philippine Stock Exchange (PSE) this morning. The suspension of trading at the PSE was reported by ABS-CBN Business correspondent Martha Vinzons. According to the report, the bomb threat was received around [...]