PSEi up 1.86% to new high on record value turnover

The Philippine Stock Exchange index closed to a new all-time high Monday on record value turnover, fueled by positive sentiment toward the mining and oil sector that powered the market’s continuing bullrun. The PSEi gained 74.02 points or 1.86 percent to close at 4,053.32, overshadowing the previous record of 4,005.46 on Sept. 16, 2010. Value turnover also reached a record P12.96 billion, indicating a strong participation of foreign money in local equities. Around 7.786 billion shares changed hands. Advancers led decliners 108 to 30, with 30 issues unchanged. Investors are in the “mood for rotational buying," according to trader Justino Calaycay Jr. of Accord Capital Equities Corp. The mining and oil sector skyrocketed by 7.97 percent, fueling the rally, followed by the financial, industrial, and property counters, which rose by more than 1.1 percent each. This is an expression of support for the Aquino administrations positive pronouncements on the mining industry, Calaycay said. Investments in the mining sector could reach $13.5 billion by 2012, the Department of Environment and Natural Resources said on Sept. 15. Mining and oil companies have lagged behind other subsectors in the current bullrun, said Calaycay. “This time, investors are putting their funds in these firms while [waiting] for a correction to happen." Meanwhile, online broker CitisecOnline said in a report that the PSEi has been supported by ample liquidity, strong corporate earnings, and investor confidence in the new administration. CitisecOnline expects the PSEi to end 2011 at 5,300, or 30.75 percent higher than Monday’s close. Despite the significant run up in share prices, Philippine stocks remain “under-owned," the online broker said. “The portion of trust industry assets placed in investments such as stocks and bonds has shrunk to 39 percent from 65 percent." Trading on Monday closed at 1:10 p.m. after a "technical glitch" delayed the usual opening at 10:10 a.m., according to an officer of the PSE Communications Group. "There was a technical glitch in the trading system," said Nina Kristi Bocalan-Zabella, assistant head of PSE's public and investor relations sector. The market normally opens at 9 a.m. and closes at 12:10 p.m. —JE/VS, GMANews.TV