Local stocks traded slightly higher on Monday even as investors took a mostly wait-and-see mode until more incentives emerge in the coming days.
Astro del Castillo, managing director at First Grade Finance Inc., said the moderate rise in Monday’s trading was due to the market “taking a pause” from the winning streak seen toward the end of August.
“It is part of the consolidation. The market is taking a pause. Given no new political issues, people are on the sidelines. There was also no positive news to push up the market further,” del Castillo said in a phone interview.
Harry Liu, president of Summit Securities Inc., mirrored Del Castillo’s statement, saying that as September enters — the start of the “ber” months — there is usually a dearth of market-moving news that will push or pull the market extraordinarily.
“Not much activity. Basically, it’s just trying to support the 7,000 level, waiting for good news. No negative news so far. All we can say is that the market is moving regularly. Overall, the long-term trend is very much intact,” Liu said.
Liu also said that the market may consolidate further this week, trading sideways over the short term and trending upwards over the long term. He noted that the resistance level is at 7,200, while support is seen at the 6,850 to 7,000 range.
The Philippine Stock Exchange index (PSEi) finished Monday’s trade up 32.60 points or 0.46 percent at 7,083.49, while the All Shares index was also up 26.19 points or 0.63 percent at 4,196.20.
Only the services sector declined, down 24.27 points or 1.08 percent at 2,212.89, while the other sectors finished higher.
Financials inched up 4.34 points or 0.27 percent to 1,630.16 while industrials surged 116.44 points or 1.08 percent to 10,901.19.
Holding firms rose 71.32 points or 1.16 percent to 6,221.44 and mining and oil added 84.41 points or 0.48 percent to 17,687.56, while property climbed 15.71 points or 0.59 percent to 2,692.04.
Of the top-traded stocks, four were gainers while six suffered losses. The advancers were Globe Telecom Inc., Semirara Mining and Power Corp., SM Investments Corp. and DMCI Holdings Inc.
The top losers were Philippine Long Distance Telephone Co., Alliance Global Group Inc., BDO Unibank Inc., Ayala Land Inc., Metro Pacific Investments Corp. and Energy Development Corp.
The volume of stocks traded was 1.3 billion valued at P8.4 billion. Advancers outnumbered decliners 110 to 76, while 41 shares were unchanged.
On Friday, the benchmark index closed 49.81 points or 0.70 percent at 7,050.89, while the All Shares index slipped 0.85 percent or 35.65 points to 4,170.01.