Foreign buying of stocks up 17.9%

this story was taken from www.inq7money.net
URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=04&dd=17&file=5

EXCHANGE EXPECTS FURTHER INCREASES IN COMING MONTHS
Foreign buying of stocks up 17.9%
Posted: 0:28 AM | Apr. 17, 2006
Elizabeth L. Sanchez
Inquirer

Published on Page B6 of the April 17, 2006 issue of the Philippine Daily Inquirer

 

FOREIGN BUYING in the stock market during the first quarter expanded 17.9 percent from its year-ago level, the Philippine Stock Exchange (PSE) said in a statement.

 

Data from the PSE showed that gross foreign stock market buying from January to March reached P91.9 billion from P78 billion in the same period last year.

 

Net foreign buying--or total foreign buying less selling--hit P16.69 billion, 17.8 percent higher than the P14.2-billion in the same three-month period last year.

 

"Net foreign buying increased despite accelerated selling among foreign investors for the first quarter of the year," said PSE president Francis Lim. "From only P63.8 billion a year ago, foreign selling increased by 17.9 percent to P75.2 billion."

 

In March alone, foreign selling accelerated by 60.6 percent to P39.2 billion from P24.2 billion the previous month.

 

Gross foreign buying, on the other hand, climbed to P41.8 billion in March.

 

"Based on the data, one can draw the conclusion that doubts about the stability of Ms Arroyo's government somehow bothered investors, and that explains the increased selling," Lim said. "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."

 

Lim also noted promising signs that foreign buying will further increase in the coming months.

 

For instance, net foreign buying during the fourth and last weeks 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 reached P7.2 billion on the third week of February.