052307: Arroyo sees more bull runs, lauds PSE for market gains

By Mia M. Gonzalez

Reporter

PRESIDENT Arroyo on Tuesday predicted sustained growth for the Philippine stock market, the index of which rose to an all-time high this week of 3,505.03 points. The President made her fearless forecast in a brief speech she delivered at the Philippine Stock Exchange’s Ayala Trading Floor where she congratulated employees, traders, and brokers for the feat. “In the weeks, months and years to come I believe we can look forward to further run of the bulls, to many more unheard-of heights,” said Mrs. Arroyo. In his speech, PSE chairman Justice Jose Vitug praised the President’s fiscal reform program that “has reduced the budget deficit and interest rates, kept inflation rates low,” leading to the fueling of market growth. “We believe that as long as your government sustains the reforms, our market in turn can maintain its record-breaking advance. It’s no empty wish, especially now that election fever has subsided. Now we can focus on our own reforms in helping our market develop a new habit: that of setting new records,” said Vitug. He reported that prices tracked by the index [PSEi] “are moving to levels never enjoyed before by investors in the 80-year history” of the PSE. On Friday, the PSEi reached 3,449.18 points, surpassing the 3,447.60 posted in February 3, 1997, and was in turn broken on Monday, when the PSEi closed at 3,466.34 points. Vitug said that average daily value turnover was around P800 million in 2004, but doubled to P1.6 billion in 2005, increased to P2.3 billion last year, and has again doubled to P4.73 billion so far, this year. In terms of net foreign transaction, the PSE chairman reported it increased to P23.53 billion in 2005 from P17.83 billion in 2004, to P68.49 billion in 2006, and for the first four months this year it reached P33.76 billion, which is 73.2-percent higher than in a similar period the previous year. “We are indeed on a roll.” Mrs. Arroyo thanked the investor community “for acknowledging the nation’s hard work, hard-won advances in fiscal consolidation, economic growth and political stability.” In a radio interview, Presidential Management Staff chief Cerge Remonde quoted the President as saying during the National Economic and Development Authority Board meeting that the Philippines is “defying the world trend because the NYSE and the NASDAQ are going down but the PSE is breaking records.” Said Remonde, “the record growth of the stock market index is incontrovertible proof the local and international business community welcomed the peaceful conduct of the recent elections.”

 

http://www.businessmirror.com.ph/05232007/headlines02.html