After seven days of sustaining losses, the local equities market made a technical rebound on Tuesday.
The Philippine Stock Exchange index (PSEi) recovered from its seven-day decline, going up by 0.94 percent, or 58.94 points to end at 6,324.17.
“The PSEi snapped a seven-session slump, albeit it doesn’t seem to amount to more than a technical rebound. On the surface, it is indeed a tough challenge to elicit optimism based solely on today’s [Tuesday] action marked by value turnover slacking off in the afternoon session,” said Jun Calaycay, Accord Capital Equities Corp. analyst.
“The index met stiff resistance at the 6,300-[point]line, a possible and critical turning point in holding or revising the full-year index target, but managed to cross over later in the day,” he said.
Calaycay added that more evidences that the global economic recovery has gained significant traction provided the positive undercurrents in the market on Tuesday, despite still palpable fears following an extended seven-day decline.
“Activity is going at par with the averages even as the near-term negative breadth remains to be fully overturned,” he further said.
The broader all shares also gained, and went up by 0.71 percent, or 27.03 points to 3,852.21.
Except for financials and mining and oil, majority of the sub-indices settled on the green side with services posting the largest gain, rising by 2.35 percent, or 45.52 points to 1,980.54.
Property also went up significantly, gaining 1.33 percent, or 33.64 points to 2,562.26, while holding firms closed less than a percent higher, advancing by 0.96 percent, or 54.53 points to 5,735.97. Industrial went up by 0.24 percent, or 21.68 points to 9,011.81.
Mining and oil, on the other hand, dipped by 1.39 percent, or 168.44 points to 11,936.84, followed by the financials counter, which registered a 0.60-percent drop, or 9.20 points to 1,528.64.
Total value turnover was higher at P11.2 billion, with gainers edging decliners, 81 to 66.
Some of the most actively traded stocks on Tuesday were Alliance Global Group Inc., newly listed Robinsons Retail Holdings Inc., JG Summit Holdings Inc., LT Group Inc. and Ayala Corp.