Local stocks made its way out of a three-day losing momentum, also mimicking optimism seen in other major markets as it waits for the results of Federal Open Market Committee (FOMC) meeting.
The FOMC will wrap up a two-day meeting on Thursday with a policy statement that will be closely scrutinized for clues on how quickly the US Federal Reserve will begin to taper its $85-billion-a-month asset-purchases program.
Reversing early losses, the Philippine Stock Exchange index (PSEi) recovered on Tuesday with a 10.34-point increase, or a gain of 0.15 percent to end at 6,728.
For his part, First Metro Investments Corp. President Roberto Juanchito Dispo said that “normalcy returned to the market.”
“Flows are returning back to the Philippine stock market. We’re confident that normalcy has set in and we think the PSEi will head to 7,200 [points]by yearend,” he added.
Hans Sicat, PSE president and chief executive officer, also said that while the market managed to go up on Tuesday, the volatility within the market is only caused by the absence of investors that are currently on vacation.
“We would want higher volumes, but for those in the market, they seem to be trading more on fundamentals. A lot of people are on vacation,” he specified.
The wider all-shares index, on the other hand, remained in the red with a slight decline of 0.31 points, or 0.01 percent to 4,085.74.
Sub-indices were somehow changed as half of the sectors registered losses, while the other half managed to post minor gains.
Mining and oil recorded the largest decline, snapping by 2.54 percent, or 389.16 points to 14,907.58, followed by industrial, which plummeted 0.40 percent, or 40.44 points to close at 9,955.69. Property fell 0.21 percent, or 5.50 points to 2,642.45.
Financials, on the other hand, went up 1.11 percent, or 17.53 points to 1,595.85, while holding firms and services posted slight increases.
Total value turnover improved a bit to reach P7.3 billion, with decliners still beating advancers, 100 to 58.
Some of the most actively traded stocks were Manila Electric Co., LT Group Inc., Metropolitan Bank and Trust Co., Ayala Land Inc., SM Prime Holdings Inc. and SM Investments Corp.
With the onset of the so-called “ghost month,” the benchmark index greeted the week with another decline, setting a three-day losing momentum that started Thursday last week.
On Monday, the PSEi went down by 0.68 percent, or 45.96 points to close at 6,717.66, while the wider all-shares barometer plummeted 0.70 percent, or 28.94 points to 4,086.05.
“Share prices extended Friday’s loss to a third session as investors shared in the gloom that prevailed over the region ahead of an expected contraction in US pending home sales, concerns over China’s slowing economy and a Federal Reserve meeting later in the week,” Jun Calaycay, Accord Capital Equities Corp. analyst, said.