LOCAL shares closed the week higher on bargain-hunting interest in recently sold-down stocks, with company earnings results and Wall Street’s strong gains providing additional support.
On Friday, the Philippine Stock Exchange index (PSEi) gained 18.71 points or 0.26 percent to 7,217.34, while the wider All Shares index added 8.90 points or 0.21 percent to 4,245.96.
The main index finished the week 25.22 points higher than its closing level of 7,192.12 on Monday, November 10.
Alexander Adrian Tiu, analyst at AB Capital Securities Inc., said the PSEi recouped its losses on Friday thanks to bargain-hunting interest in select stocks.
“The market rebounded on Friday led by BDO Unibank Inc., GT Capital Holdings Inc., and International Container Terminal Services Inc. as they had incurred losses in the past few days,” Tiu said.
“As far as stocks in general, locally we are still tracking earnings. It is the key indicator. Basically that’s it. Also, the Dow closed at a new high.
This signifies a bullish market in the US, which also helped us. Investors were very bullish,” he added.
Overnight the Dow Jones was up 40.59 points or 0.23 percent while the S&P 500 was flat, adding just 1.08 points or 0.05 percent. Nasdaq gained 5.01 points or 0.11 percent.
Tiu said the market will likely trade sideways next week and is set to “break out or break down,” depending on the US retail sales report and reaction to the minutes of the Federal Open Market Committee (FOMC) meeting held last October 28-29, which are due for release next week.
The sectoral indices were mixed. Industrials and holding firms both declined by 0.18 percent, with industrials down 20.57 points at 11,662.19, while holding firms lost 11.56 points to 6,270.22. Property was flat, slipping just 0.08 point to 2,868.24
Among the gainers were financials, up 16.32 points or 0.96 percent at 1,708.16, as well as services and mining and oil. Services advanced 10.38 points or 0.49 percent to 2,129.19 and mining and oil climbed 119.77 points or 0.79 percent to 15,306.24.
The most actively traded stocks were PLDT, which ended flat, and top decliners BDO Alliance Global Group Inc., Ayala Land Inc., Vista Land and Lifescapes Inc., and Cebu Air Inc. Top gainers were BDO, GT Capital, Robinsons Retail Holdings Inc., Aboitiz Power Corp., and Ayala Corp.
Losers narrowly outnumbered gainers 90 to 86, while 36 shares were unchanged. Total volume traded was 2.44 billion shares amounting to P6.65 billion.
On Thursday, the main index snapped its two-day winning streak, ending down 34.24 points or 0.47 percent to 7,198.63, while the All Shares was down 16.54 points or 0.39 percent to 4,237.06.