RP share prices up for 5th successive trading day

Share prices on the Philippine Stock Exchange on Monday rose for the 5th successive trading day since Aug. 31, buoyed by the perception that the Southeast Asian economic environment is in a better position to fuel a bull run as the US and European markets continue to reel from the impact of the global financial crisis. The situation is an attractive proposition for investors to take the risk, said Jonathan Ravelas, chief market strategist of Banco de Oro Unibank Inc. The Philippines is at the "start of a massive bull market," he said, quoting a report of Macquarie Group Ltd., a Sydney-based global fund management firm. The benchmark index edged up 9.34 points or 0.25 percent to close at 3,744.01. More than 2.404 billion shares valued at P5.869 billion changed hands. Winners led losers 90 to 47, while 46 issues remained unchanged. The Macquarie report says that Philippine "stock valuations remain undemanding because the government's economic and investment targets will help sustain earnings," according to Ravelas. As long as the Philippines can keep the "forex rate, interest rate, inflation rate environment" stable, the PSEi will "continue to rally," he added. The Philippine economy accelerated at the fastest pace in three years in the second quarter, growing 7.9 percent as measured by the gross domestic product. —JE/VS, GMANews.TV