Buyers prevailed on Friday as a delay in the US interest rate increase prompted foreign investors to take positions anew in the local market.
The benchmark PSEi jumped by more than 1 percent at 7,210 during the morning session.
However, the main index lost most of the gains near the close of trading, which was up only 0.11 percent or 7.82 points at 7,131.91. The wider All Shares 0.35 percent or 14.24 points to end at 4,076.60.
Harry Liu, president of Summit Securities Inc., told The Manila Times in a phone interview that the market was boosted by the short-term relief offered by the Federal Reserve when it decided to leave interest rates unchanged.
The US Fed cited global market uncertainties as one of the considerations for not raising interest rates at the end of a two-day meeting. Investors took it as a cue to buy into emerging market assets.
But as the PSEi reached its resistance level at 7,210, Liu said the market started to slip “as a result of a technical reaction” and some investors starting taking profits.
“There was some profit-taking towards the close. But in the next few days, I think we’ll be at the upsides moving to October and November… But not really at the all time peaks. We’ll likely trade at the range of 6,800 to 7,300,” Liu said.
In the run up to the Christmas holidays, Liu noted there may be some consolidation. He said a rally is in order for first quarter of 2016, as the market benefits from election spending, higher OFW remittances and stability in the US economy.
More than 1.34 billion shares, valued at P10 billion, were traded. Gainers beat losers, 100 to 80, while 33 issues stood unchanged.