061807: Foreign investment in stock market up 86%

By Honey Madrilejos-Reyes

Reporter

NET foreign investment in the stock market rose 86.2 percent to P46.56 billion during the first five months of the year, from 25.01 billion a year earlier, the Philippine Stock Exchange (PSE) said over the weekend. Known as net foreign buying, the measure shows the difference between how much foreign investors bought and how much they sold in a given period. “The build-up of foreign investments is fuelling the market’s record-breaking run, said PSE president Francis Lim. “I am optimistic we can sustain the interest of foreign investors, as long as the country’s economic foundations remain solid and our political leaders will maintain their sense of maturity and sobriety.” According to numbers released by the exchange, foreign buying almost doubled to P280.31 billion from P141.2 billion in the same comparable. Foreign selling expanded 101.3 percent and reached P233.75 billion from P116.14 billion.. The increase in foreign transactions coincided with the market’s record-breaking run last month. The PSE index reached new highs on May 18, 2007, closing at 3,449.18 points and breaching the previous record of 3,447.60 on February 3, 1997. The index closed at 3,474.67 on May 31, 2007 or 16.5- percent higher than its level of 2,982.54 at the end of 2006. Last Friday, the PSEi closed again at a new record high of 3,671.29 points. See RP Stocks, B2. As of May 31, Lim said total market capitalization hit P8 trillion, or 11.6 percent higher than P7.17 trillion at the end of 2006. The market capitalization of listed domestic companies also reached P4.1 trillion or 22.4-percent higher than P3.35 trillion at the end of 2006. Last month was a landmark period for domestic companies, as their market capitalization hit the P4 trillion for the first time. Meanwhile, total value turnover from January to May reached P499.78 billion or 134.1-percent more than the P213.45 billion a year earlier. Average daily value turnover also grew 138.9 percent to P4.85 billion from P2.03 billion during the same comparable period.