Local stocks extended modest gains for a second day on Tuesday as investors took their cue from firmer Asian markets, although buying was tempered by caution ahead of the Philippines’ August inflation figures.
The Philippine Stock Exchange index (PSEi) was up 23.07 points or 0.33 percent at 7,106.56 while the All Shares index inched up 12.62 points or 0.30 percent to 4,208.82.
“Markets across Asia were also mostly in green,” said Justino Calaycay Jr., equity analyst at Accord Capital Equities Corp.
He said the market hit 7,120 points during noon trade “but failed to sustain” its momentum due to a lack of market-moving news.
“The PSEi broke through the 7,100-line but failed to sustain trades at the peak of 7,120.77. It struggled but eventually managed to stay above the mark as it extended gains to a second day,” Calaycay said.
Calaycay said the market is watching how the situation in Ukraine develops as Russian troops move across Ukraine’s border. On the local front, he said many investors stayed on the sidelines while waiting for the outcome of the next Monetary Board meeting on September 11 following the release of August inflation figures on September 5.
“The first challenge for the PSEi these days is to stay above the 7,100-line and secondary to that, to test resistance at 7,200. Ceteris paribus [all other things being equal], it is likely the 7,000 line will hold, even as the major support range extends back to between 6,950 and 6,970,” Calaycay said.
Only mining and oil finished lower among the sub-indices, losing 82.35 points or 0.47 percent to 7,605.21.
Financials added 2.75 points or 0.17 percent to 1,632.91, industrials advanced 53.18 points or 0.49 percent to 10,954.37 and holding Firms jumped 40.23 points or 0.65 percent to 6,261.67.
Services barely moved, inching up 1.57 points or 0.07 percent or to 2,214.46, while property added 5.49 points or 0.20 percent to 2,697.53.
Though actively traded, Philippine Long Distance Telephone Co. and Ayala Land Inc. ended flat.
Other top-traded stocks on Tuesday were Alliance Global Group Inc., down 1.43 percent or 35 cents at P24.20; International Container Terminal Services Inc., up 0.09 percent or 10 cents at P114.10; SM Investments Corp., up 0.76 percent or P6 at P795.50; and Aboitiz Equity Ventures Inc., up 1.64 percent or 90 cents at P1.86.
Total volume traded was 2.654 billion shares worth P9.689 billion.
On Monday, the PSEi recovered from two days of losses last week, rising 32.60 points or 0.46 percent to 7,083.49, while the All Shares index went up 26.19 points or 0.63 percent to 4,196.20.