Sentiment Taking Stocks Into Record Territory

Although the stock markets are often extremely turbulent, many of the global markets have experienced a prosperous time over the past few months. One of the most successful of these has been the Philippine Stock Exchange, which has seen continual rises over the last year. The PSE has been in operation since 1927, making it one of the longest-running stock exchanges in Southeast Asia. Its primary index is the PSE Composite Index, more commonly known as the PSEi. The PSEi is made up of thirty key companies in service in the Philippines, though there are six other indices which include companies within particular industries. The PSEi, however, has done particularly well, reaching record highs 38 times throughout the last fiscal year.

November was a highlight for the PSEi. Due to high investor sentiment in both the local and global economies, the stock index was able to reach record highs. The 26th November was a notable day, as the PSEi closed on the all-time high of 5,579.42 after rising my 27.08 points. It was also a very good month for the Philippine national currency, the peso, which achieved its highest close against the dollar in over four years – reaching 41 peso to a dollar. This was most probably a result of improvements on stock markets worldwide. Renewed faith in the avoidance of the US fiscal cliff in the New Year, as well as a more positive outlook relating to the financial problems throughout Greece and wider Europe, led to an improvement across most capital markets.

Currently, the Philippine Stock Exchange is still in a very good position. The good fortunes have continued throughout December. In fact, 9 of the 38 record-breaking rises occurred since the important date of 26th November. The latest high was set just a few days ago, when the PSEi closed on 5,832.83. The amount of companies experiencing gains during this period (92) greatly outweighs both those who have suffered losses (60) and those who have showed no change (51). This has resulted in some good wins for investors, particularly those with interests in spread betting which relies on continued gains or losses across certain shares. It is thought that the continued prosperity of the market is being helped by end-of-year ‘window shopping’ – the term used to describe the habit of brokers selling poorly-performing stocks and investing in ones doing well.

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Author – Adam has been writing articles for a number of years now with great success in differing sectors