Philippine stocks continued their upsurge on Monday with the benchmark index nearing the 6,900-point mark anew, which analysts attributed to “fundamentals of global and local markets.”
The Philippine stock exchange index (PSEi) surged by 2.59 percent, or 173.65 points to 6,875.60, while the wider all-shares index increased by 1.96 percent, or 81.20 points to 4,229.61.
Harry Liu, president of Summit Securities Inc., said in a text message that the rise of the foreign markets—the Dow Jones and Nikkei especially—contributed to the continued rebound of the local bourse.
“Fundamental improvements in global and local market is providing the rally in the markets, but the long-term trend is still good,” he added.
According to Liu, the current resistance level of the market is 7,000 points, while support level is at 6,650.
But when asked if 7,000 points is achievable during the week, Liu said that there is a possibility.
“Maybe, but we are in a rally mode—short-term rally to consolidate on the medium term. Maybe in two to three months,” he added.
Juanis Barredo, technical analyst of COL Financial Group Inc., agreed with Liu on market being in consolidation that led to “temporary rebound” of the bourse, adding that this phase will last most likely three to five weeks.
But Barredo contradicted Liu’s optimism for months to come, saying that the market may be “slightly biased on the bad side” during and after consolidation phase.
“That is because we seek cheaper valuation for the market. For the past [months], the market has been expensive that you need to take time to lower the price of the market,” Barredo said.
Meanwhile, all counters of the bourse rose with services leading with a gain of 4.36 percent, or 85.96 points to 2,058.76.
The property counter came second, registering an increase of 3.02 percent, or 81.59 points to 2,784.79. Mining and oil improved by 114.70 points, or 0.70 percent 16,590.65, while holding firms accumulated 159.41 points, or 2.66 percent to 6,157.74.
Financials gained 2.02 percent, or 34.57 points to 1,741.81.Industrial stepped up slightly by 66.22 points, or 0.63 percent to 10,510.64.
Advancers outnumbered decliners by a mile, 123 to 52, while 29 issues were unchanged.
Total value turnover closed in at more than P14.22 billion.
The top 10 most active shares all ended in the green with Metropolitan Bank and Trust Co. topping the list. Other shares that actively traded on Monday were SM Prime Holdings Inc., Alliance Global Group Inc., GT Capital Inc., Philippine Long Distance Telephone Co., SM Investments Corp., BDO Unibank Inc., Megaworld Corp. and Cosco Capital Inc.
On Friday, the PSEi advanced by 1.41 percent, or 92.94 points to 6,701.95, while the broader all-shares index closed with a 1.19-percent ascent, or 48.80 points to 4,148.41.