The Philippine Stock Exchange index (PSEi) maintained its climb to the 7000 level as its closed at 7,209.44, up by 2.53 percent or 178.49 points on Thursday. Analysts said the local market took its cue from the Wall Street’s gains. The PSEi could also be seen to bounce back to the 7500 level.
Here are three fast facts on the PSEi maintaining surge at 7000 level.
1. The PSEi followed the boost from the US and European markets.
“The market got a boost today following the rally in the US markets last night,” Business World reported Lexter L. Azurin, head of research at Unicapital Securities, Inc., as saying. The Nasdaq surged at record high of 0.2 percent to end at 5,487.94 on Thursday.
“FOMC (Federal Open Market Committee) minutes showed a possible resurgence of the US economy,” Unicapital’s Mr. Azurin said. There were also positive sentiments following the boost of upbeat factory and service sector surveys.
2. The PSEi was up because there was a reversal from foreign selling to foreign buying.
“With foreign selling reversing to foreign buying, the market spiked sharply. Note also that valuations have become reasonable after the drop last year,” Miguel A. Agarao, vice-president of Philequity Management, Inc., said.
Investors were also starting to resume with their buying spree as they take their respective investing positions. Foreign investors were also net buyers for the fifth straight session. Net inflows for the day amounted to P728 million.
3. The PSEi is seen to bounce back to the 7500 level.
With the PSEi trading back to the 7000 level for good straight days, analysts said that the PSEi could try reaching the 7500 level again.
“We continue to believe that the strong fundamentals will propel the PSEi back to 7,500 with an earnings growth of 8 percent and P/E multiple of 17x,” The Philippine Daily Inquirer reported Cristina Ulang, FMIC head of research, as saying.
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