Net foreign buying in the stock market last January surged 264.03 percent to P11.82 billion from only P3.25 billion the same period last year.

Net foreign buying is the difference between foreign buying and foreign selling in local stocks.

"We are off to a good start, and I am confident we can sustain our momentum, provided we maintain if not improve on the market’s favorable investment environment," said Philippine Stock Exchange (PSE) president Francis Lim.

Lim said this only means keeping in place the PSE’s reform program to assure the integrity of the market and the efficient operation of the exchange.

The PSE chief said this will also require the government to attain a balanced budget, tame inflation and stabilize interest rates.

Lim is also hoping for a peaceful and credible national elections in May to ensure the continued growth of the stock market.

Based on figures collated by the PSE, total foreign buying soared 263 percent to P54.62 billion in January from P15.05 billion during the same month last year.

Total foreign selling also increased 263 percent to P42.80 billion from P11.80 billion in the same period last year.

"This is a clear indication that more and more foreign investors are entrusting their money with us," Lim said.

With foreign buying up, stock market activity also enjoyed brisk business as total turnover rose to P86.35 billion, or 265.86 percent higher than the year-ago level of P23.60 billion. Average daily value turnover in January expanded 265.86 percent to P3.93 billion from P1.07 billion a year earlier.

Total market capitalization of all listed issues as of January 2007 grew 24.18 percent to P7.44 trillion from P5.99 trillion in January 2006. The market capitalization of listed domestic companies reached P3.66 trillion, or an increase of 65.02 percent from P2.22 trillion.

Stock prices, as tracked by the PSEi, went up by 8.61 percent to 3,239.27 during the first month of the year from 2,982.54 at the end of 2006.

At the end of January, the prices of 156 issues were up, those of 48 others were down, while that of 27 other issues were unchanged compared to their levels at the end of 2006.