PH shares flat; strong resistance at 6,780


Philippine shares barely budged on Monday in the absence of strong leads, although the main index managed to finish in positive territory after meeting stiff resistance at the 6,870-point level.

The trading week opened on a subdued yet optimistic footing, said Justino Calaycay, analyst at Accord Capital Equities Corp.

The Philippine Stock Exchange index (PSEi) inched up just 2.16 points or 0.03 percent to 6,844.31, while the wider all shares added 2.49 points or 0.06 percent to 4,106.28.

“Shares brushed off Friday’s fall to regain their footing and looked poised to snap Friday’s slide,” Calaycay said. The main index rose nearly 30 points after the opening bell “but found stiff resistance at the 6,870 level,” he said.

Calaycay said that over the first six months of the year, the market demonstrated general optimism that has already been validated by numbers.

“Optimism will remain the principal sentiment going into the second semester, with the broad economy seen [posting]improving numbers,” he said, but added that caution will nonetheless temper this optimism.

Except for the rising tension in Iraq, Calaycay said leads for Monday trade were few and far between over the weekend. US equities were flat Friday with Europe posting marginal gains, while shares across Asia Pacific were mostly higher on Monday.

The sectoral indices were mixed. Mining and oil led the gains, rising 149.92 points or 0.92 percent to 16,541.46, followed by services, which added 12.02 points or 0.59 percent to 2,051.79. Holding firms advanced 12.46 points or 0.20 percent to 6,243.17.

Property retreated 20.63 points or 0.78 percent to 2,607.60 while industrial firms lost 39.03 points or 0.38 percent to 10,345.23. Financials dipped 1.48 points or 0.09 percent to 1,631.47.

Trading volume was higher with 5.04 billion shares worth P8.6 billion changing hands. Decliners outpaced advancers 99 to 83, while 47 issues were unchanged.

Some of the most actively traded stocks on Monday were Philippine Long Distance Telephone Co., up 0.95 percent at P2,988.00; Ayala Corp., down 0.08 percent at P647.50; Ayala Land, Inc., down 1.13 percent at P30.50; Alsons Consolidated Resources, Inc., down 0.45 percent at P2.21; and SM Investments Corp., up 0.55 percent at P816.00.

Keppel Philippine Holdings, Inc. was among the top gainers, with its shares climbing 12.89 percent to P5.08.

Asked for comment on the sharp rise in its share price, Keppel Philippines said: “We are not aware of any undisclosed material information that could have affected the price movement of the Company’s shares during the aforesaid period.”


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