PLDT and A Resurgent Global Telecom Sector

Figure 6: stockcharts.com PLDT and Dow Jones World Telecom Index

Finally, this is just an observation; PLDT which today represents 18.87% of the Philippine benchmark index, has taken most of the load in driving the Phisix to its present level since 2003.

Yet in figure 6, the patterns of telecom issues worldwide, represented by the Dow Jones World Telecoms Index (line chart) and PLDT has been growing its correlation since 2006.

While I may be guilty of clustering illusions or seeing patterns when none exists, I think that following the tech bubble implosion in 2000 which included the telecom sector, the resurgent money flows towards the telecoms issues globally has further increased the global investor’s attention towards the Phisix’s major component.

A resurgent global telecom sector should constitute a significant impetus for local and regional telecom issues overtime.