PHILIPPINE financial markets marked gains on Monday despite the uncertain results of a European leaders’ summit on the region’s debt woes.
At the Philippine Stock Exchange, the composite index added 34.48 points, or 0.83 percent to close at 4,201.08, while the broader-all shares index rose 13.97 points, or 0.48 percent to close at 2,950.18.
Decliners, however, edged advancers, 77 to 75, while 28 stocks were unchanged. A total of 9.41 billion shares worth P4.51 billion changed hands.
The index was limited to a 30- to 35-point advance despite a positive backdrop of heightened optimism following the death of Libyan dictator Moammar Gadhafi and the much awaited European Union debt summit, said Jun Calaycay of Accord Capital Equities Corp.
“The lack of clarity from Europe limited the advance with investors staying cautious ahead of Wednesday’s scheduled summit announcement,” Calaycay said,
German Chancellor Angela Merkel earlier downplayed the chances of an agreement on four major agenda points covering beefing up the bailout fund, cutting Greece’s debt without triggering a feared default, shielding banks from the fall out, and insulating Italy and Spain from the crisis.
The market is expected to begin discounting a positive output from the summit, which may encourage bargain-hunters and short-term funds back into the equities mart.
Support is pegged at 4,200, with resistance at 4,250 to 4,270.
At the Philippine Dealing System, the peso gained 17.5 centavos to close at 43.265 against the US dollar on Monday from 43.440 last Friday.
“Focus now is on a deal to be reached at another summit this coming Wednesday in order to tackle bank recapitalization, a Greek default and plans to beef up the 440 billion euros European Financial Stability Facility,” an analyst from the Metropolitan Bank and Trust Co. said in a commentary.
The dollar-peso pair opened at 43.340 with bids ranging from a high of 43.360 to a low of 43.220.
Total trading volume reached $923.280 million from $886.780 million last Friday.
“Expect players to look to the EU meeting to gauge sentiment and direction. Should the package disappoint investors, there may be a larger pullback in government security yields. However, should the package be more comprehensive than expected, some buying may materialize to take yields lower,” another analyst said.
In a separate commentary, Security Bank said the “market remains bullish that the banks will be guaranteed funding to help liquidity pressures.”
The dollar-peso currency pair is expected to trade within the 43.20 to 43.50 range today.
