Wednesday, July 20, 2016

Global shift to equities from bonds powers market rally

MANILA – Investors shifting to equities from bonds are fueling the rally in the local stock market, an analyst said Wednesday.

The Philippine Stock Exchange Index opened at 8,034.76 points from Tuesday’s close of 8,036. It is expected to test 8,100 points, said BPI Trade CEO Mike Oyson.

“It’s about the global liquidity,” Oyson told ANC’s “Market Edge with Cathy Yang.”

With bond yields falling, “stocks now are what you call the yield instruments,” he said.

The recent strength of Southeast Asian markets show the region has become a “basket” for funds flowing out of developed markets, he said.