The local stock market started the week firmer as positive economic data from China and brisk trading on global markets cheered investors.
“Heavy rains greeted the week but sentiment was sunny when trades began on Monday, with the balance of news favoring the bulls,” Accord Capital Equities Corp. analyst Justino Calaycay said.
Calaycay was referring to the rise in China’s purchasing manager’s index (PMI), record levels in US stocks and a six-month high in the Nikkei, which all trumped rising crude prices.
However, he said tensions in Iraq remained the main thorn that “could prick the optimists’ bubble moving forward.”
The Philippine Stock Exchange index (PSEi) rose on Monday, sustaining the upward momentum from Friday, and closed higher by 31.03 points or 0.46 percent at 6,761.99. The wider all shares index inched up 15.42 points, or 0.38 percent, to 4,057.43.
The “aggregate share price jumped more than 30 points from the get-go, with advancers leading decliners two-to-one. However, it met resistance and struggled to make a sustained breach of the 6,770-levels as investors appeared apprehensive over pushing prices to the next higher range absent stronger, market-moving news,” Calaycay explained.
Except for mining and oil, which eased 1.15 points, or 0.007 percent to 16,243.13, and services, which lost 3.46 points, or 0.17 percent xxxx, the rest of the sectoral indexes posted gains, alongside the main index.
Property had the largest increase, rising by 29.91 points, or 1.16 percent to 2,617.40, followed by industrials, which gained 71.68 points, or 0.70 percent to 10,377.29. Holding firms climbed 17.38 points, or 0.28 percent to 6,150.00, while financials gained 9.16 points, or 0.57 percent to 1,603.19.
Some of the most actively traded stocks were Ayala Land Inc., up 2.49 percent at P30.90, Philippine Long Distance Telephone Co., up 0.07 percent at P2,862, Alliance Global Group Inc., up 0.53 percent at P28.65, and SM Investments Corp., up 2.30 percent at P799.
Chemical Industries of the Philippines Inc. (CIP), the day’s top gainer, surged 39.51 percent to P298.00 from P213.60 apiece at the previous close. CIP said in a letter to the stock exchange there has been no change to the business operations of the company that could affect trading in its shares.
“We, likewise, have no knowledge of the existence or absence of any undisclosed
information that could have triggered the unusual price movement observed. Thus, it is our assumption that the said price movement is purely market-driven,” CIP explained.
The overall volume of shares traded on the exchange thinned to 1.01 billion, valued only at P6.2 billion. Advancers outnumbered decliners 101 to 87, while 35 were unchanged.
On Friday, the local benchmark index rebounded from Thursday’s loss as the market viewed the hike in Bangko Sentral ng Pilipinas’ special deposit account rate as beneficial to the banking sector and conglomerates. The PSEi finished last week’s trade at 6,730.96, up 31.57 points, or 0.47 percent, from the previous day.