Stocks index sets all-time record, closes at 6,000

The local bourse finished past the 6,000-level Monday, way ahead of forecasts that this will happen at the latter part of the first half.

The composite index surged by 1.23 percent or 73.46 points to 6,044.91 points, from last week’s 5,971.45 level. It surpassed the previous record of 5,971.45 hit on January 4, 2013.

It breached the 6,000-level at 9:40 a.m.

PSE President and Chief Executive Officer Hans B. Sicat, in a statement, said "we are very proud to have reached and breached the 6,000 level which affirm that market liquidity continues to be strong and investor sentiment remain positive over good news both locally and abroad.”

“We also believe that corporate earnings will remain strong for the full year of 2013, which should support the market's phenomenal performance. Indeed it is more fun at 6,000 and we look forward to setting new records this year," he added.

Also, the broader all shares index is up by 0.88 percent or 33.28 points to 3,811.71 points, up from 3,778.43 in the previous trade.

All the sector indices also posted gains with the mining and oil, financials, property and the holding firms posting above one percent expansion.

Value turn-over reached P8.51 billion after 3.32 billion shares changed hands.

Gainers led losers at 107 to 71 while 39 stocks were unchanged.

Active stocks were led by Megaworld, BDO, Metrobank, PLDT, SM Prime, SMIC, Ayala Corp., BPI, MPIC, and Alliance Global.

BDO chief strategist Jonathan Ravelas, told PNA in an interview that news both here and overseas boost investors’ sentiment.

Among the factors he cited are the strong growth prospects of the domestic economy, the low domestic inflation environment and the outlook on election-related spending as well as the partial resolution of the US’ fiscal situation.

Ravelas projects a 6,100-6,300-level for the main index this year.

He, on the other hand, noted that valuation of companies are already expensive but any correction on this will be known after the companies release the results of their 2012 fourth quarter results by February.

He also noted that the market is now ripe for correction given the surge of the Philippine Stock Exchange index (PSEi).

“Definitely a correction will happen but it’s a question of when as market remains liquid,” he added.

Similarly, First Grade Holdings Inc. Managing Director Astro del Castillo told PNA the local bourse “needs to consolidate before the next run up.”

“The market is really ripe for a correction. Expect the market to correct anytime, over the week because the companies are now over-bought,” he said.

Del Castillo projects the main index to hover at the current level “for the next few months” and to end the year between the 7,000 -7,500 level.

“It’s anybody’s ball game right now plus the fact investors are anticipating an investment grade for the country,” he added.

On the other hand, the peso closed sideways against the dollar after finishing at 40.89 from last week’s 40.91.

It started the day at 40.88, flat from the 40.85 opening last Friday.

It traded between 40.87 and 40.89 bringing the average in 40.89.

Volume of trade amounted to US$ 840.93 million.*PNA