Looking the latest PSE Weekly Market Watch (July 4-7,2016) report, statistics shows that PSE's PE is now at 22.02, beyond the market traditional PE of 19. One significant factor that contribute to market premium is the continued influx of foreign investment now totalling 35.3B YTD.
Now, let us compare this to PSE Weekly Market report on April 6-10, 2015 when PSE PE reach 23.2 PE where Foreign Net Buying reached 49.8B YTD that send the market to the record high of 8,127.
If continued influx of foreign investors come into the market, expect the index to climb farther and may test last years record high. Then will succumb to selling pressure as next US FED meeting nears.
CAVEAT !
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