Foreign buying in stock mart up 18%
By Zinnia B. Dela Peña
The Philippine Star 04/17/2006
Foreign buying in the local stock market rose by 17.9 percent to P91.9 billion in the first three months of the year from P77.96 billion a year ago, data from the Philippine Stock Exchange (PSE) showed.
Net foreign buying hit P16.69 billion, or 17.78 percent higher than the P14.17-billion mark a year earlier.
"Net foreign buying increased despite accelerated selling among foreign investors for the first quarter of the year. From only P63.79 billion a year ago, foreign selling increased by 17.9 percent to P75.21 billion," said PSE president and chief executive officer Francis Lim.
In March alone, gross foreign buying went up to P41.75 billion while foreign selling amounted to P39.23 billion from only P24.18 billion the previous month.
"Based on the data, one can draw the inevitable conclusion that doubts about the stability of Mrs. Arroyo’s government somehow bothered investors, and that explains the increased selling," Lim explained.
"We at the PSE wanted to avert the selling. That’s why we have been repeating our call for a peaceful and orderly resolution of our political problems. "We have been making the appeal for the sake not only of the stock market, but for the thousands – if not millions – of Filipinos, whose chances of getting jobs depend on foreign investments."
"The country will either have the good fortune to catch – or the misfortune – to miss this global flow of investments, depending on how we resolve our problems in the political front," Lim pointed out.
The PSE chief, however, is optimistic that foreign buying will increase further in the coming weeks or months, noting that net foreign buying during the fourth and last week of March exceeded P1 billion a week.
"I consider this significant, because during the second and third weeks of March the stock market suffered a P514-million net foreign selling," Lim said.
Net foreign buying amounted to P7.2 billion on the third week of February, or from the 13th to 17th of said month and before reports of an alleged anti-Arroyo coup plot was bared.
"I am convinced that the appetite of foreigners to invest in the local stock market will increase, if we can find a peaceful solution to political problems that confront the country today," Lim further said.
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