The PSE Index (PSEi) reached another new high today as it went beyond the 6,500 milestone, registering 6,531.79. This occurred as interest in the stock market surged anew with a value turnover of P11.84 billion, the highest so far since November 2012. It more than doubled the anemic turnover of P4.63 billion yesterday. Gainers left behind the Lossers with an Advance/Decline Ratio of 2.15.
The All Share Index High however continued to slip down to 4,069.42 from 4,077.00. This indicates a concentration of the surging stocks among the 30-stock PSEi, which spred to the other index stocks. The general market continue to be on a slow downtrend.
Puregold Price Club Inc (PGOLD) is the most traded, involving a value turnover of P1.50 billion; followed by Universal Robina Corp (URC), P693.2 milllion, and; SM Investments Corp (SM), P628.8 million. Advance rate however topped only at 8.88% with Megaworld Warrants 2 (MEGW2). And the Decline rate reached only 16.61% with Berjaya Philippines Inc (BCOR).
ANALYSIS
The historic rise in the value turnover in an 11-digit figure may not be sustained tomorrow. Value turnover will slide as the buyers of today may not be able to get out from their positions tomorrow and buy new stocks with the proceeds. But it is expected that Gainers will continue to dominate the day. Favorite stocks may continue to reach record highs tomorrow fueled by those who sold their stocks today.
RECOMMENDATION
Look out for sell opportunities tomorrow on those stocks that are already being overvalued. Long-term investors however may find their holdings grow more; while growth investors may continue to bet on the surge's ability to be sustained further within the week or so.
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