PSE index beats Asean counterparts in Q1
abs-cbnNEWS.com | 04/13/2009 7:30 PM
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The Philippine Stock Exchange (PSE) index managed to outperform its neighbors in Southeast Asia in the first three months of the year even as the global economic crisis continues to take its toll on the local stock market.
The 30-company PSEi gained 6.05 percent in the first quarter, beating most ASEAN exchanges from the January to March period, data from the PSE's research group showed. The PSEi closed the first quarter at 1,986.22 points, up from its 1,872.85 point-level as of end-2008.
"We are not spared from the wrath of the contagion yet our strong fundamentals have kept our heads above-water where others have sunk in the recession whirlpool," PSE president and chief executive officer Francis Lim said in a statement. The PSEi is the main index barometer of overall stock market performance.
The entire ASEAN region sustained losses in the first quarter, except for the Jakarta Composite index which closed higher by 5.8 percent in the first three months of 2009.
The Kuala Lumpur Composite index dropped 0.48 percent while the Straits Times index of Singapore dropped 3.5 percent during the period. On the other hand, the Stock Exchange of Thailand index declined 4.1 percent while the Vietnam Stock index plunged 11.07 percent.
“We understand the volatility of the markets during these times and how things can turnaround if we choose to slacken on the reform measures and advocacies we are undertaking to push the stock market forward,” Lim said.
For the month of March alone, the PSEi closed higher by 6.09 percent, its biggest month-on-month gain in almost a year-and-a-half. At the close of trades on Monday, the PSEi's closing level of 2,043.20 showed a year-to-date growth of the index by 9.1 percent.
“The figures however, bear out what we have been hoping for all along, that investors recognize the positive impact of the reforms that have been set in place and put strong weight on market fundamentals. We thank the government for the fiscal and economic reforms it has executed to help lift investor confidence. We at the PSE have also done our part in implementing reforms to boost stock market investments during these tough times,” said Lim.
Domestic market capitalization of listed companies reached P2.66 trillion in March, the highest end of the month level since P2.61 trillion in October 2008. It was also 7.5 percent higher than the end-December domestic capitalization at P2.47 trillion. However, the amount was lower than its month-end level in March 2008 at P3.52 trillion.
The PSE also said value turnover has been steadily growing this year at P2.5 billion a day in March from average daily turnovers of P1.76 billion in February and P1.49 billion in January. Given the rising index, the increasing flow of money into equities lends credence to the advance.
“I believe the reforms that have been put in place in the past years have allowed us to enter the global recession from a position of strength. Hopefully, our growth momentum can allow us to once more recover from the financial storm at a faster pace, the same way we did during the 1997 Asian financial crisis,” Lim said.
