The Philippine Stock Exchange index (PSEi) closed with slight gains on Tuesday as bargain-hunting ended consecutive declines over the past few days on worries over the global economy.
The index hit an intraday high at the 7,000-point level, before closing 0.65 percent or 45.13 points higher at 6,991.19. The wider All Shares index rose 0.54 percent or 22.31 points to 4,158.29.
April Lynn Tan, head of research at COL Financial Group Inc., said the slight market gain was driven by some investors who started hunting for bargains after recent market declines as part of a consolidation phase.
“Regional markets were showing signs of improvement,” Tan said.
“It’s quite normal that there is a rebound during a correction phase, but global market woes are still there,” she added.
Tan said further gains may be expected in the coming days, although the market looks bound to continue trading in a consolidation mode.
“We might continue to see some rally from hereon – an oversold rally is possible. But it is quite difficult to go [back]up to 7,000 soon. In the next few days, we can have rebounds that don’t mean anything,” Tan said.
Tan sees the next support at 6,912 points. In case that breaks, the next immediate support is at 6,800, she said. Psychological resistance level is expected at 7,000.
The Mining and Oil counter led Tuesday’s climb, with a 1.41 percent or 225.63 points gain to 16,202.34. The rest also gained: Financials were up 0.41 percent or 6.74 points at 1,647.20; Industrial climbed 0.48 percent or 53.74 points to 11,221.07; Holding Firms inched up 0.12 percent or 7.05 points to 6,102.30; Services advanced 0.91 percent or 18.96 points to 2,107.38; and Property increased 1.15 percent or 30.96 points to 2,717.96.
Total volume was still high at 15.43 billion, valued at P12.52 billion. Advancers outnumbered decliners 102 to 63, while 47 issues closed unchanged.
On Monday, the benchmark index dropped 0.32 percent or 22.03 points to 6,946.06, while the wider All Shares index fell 0.25 percent or 10.26 points to 4,135.98.