THE Philippine Stock Exchange index (PSEi) extended its gains for a second day on Tuesday, tracking the upbeat performance of overseas markets particularly the overnight rally on Wall Street as geopolitical concerns over Ukraine eased.
US markets rallied overnight with the Dow rising 1.06 percent, the S&P 500 up 0.85 percent, and Nasdaq climbing 0.97 percent.
The benchmark index rose 55.17 points or 0.79 percent to 7,082.75 while the broader All Shares index added 25.91 points or 0.62 percent to 4,197.63.
Harry Liu, president of Summit Securities Inc., said in a phone interview that the market was up as international markets also ended firmer overnight.
“I think it is basically the US market perking up its trend. The US is more or less improving its economic situation, as well as the easing of other geopolitical concerns which also drove markets across the globe,” Liu said.
“We are in a medium-term consolidation. And market gaining despite the consolidation proved that it is moving upward [rather]than downward over the long term,” he added.
Liu said that if the market breaks the 7,100-mark next, then it will likely trade within the 7,200 to 7,400 range.
He said companies that performed below expectations in the first half are seen to report better financials in the second half of the year.
Liu also said that with the Chinese “Ghost Month” having ended by next week, renewed buying by foreign investors and fund managers will drive the market as they realign portfolios after their summer vacation.
The “Ghost Month” is considered an unlucky period for business among Chinese and is characterized by lean trades across global markets because it also coincides with the summer break of most Western fund managers.
“We should see some aggressive activity over the next few days. It is very possible [for the market]to perk up to 7,200-7,300 after the Ghost Month, on foreign buying and easing foreign geopolitical issues,” he said.
He advised market players: “Just watch out for any market moving news for the next few days.”
All sectoral indices gained led by mining and oil, which surged 201.60 points or 1.17 percent to 17,482.79, and property, which added 24.63 points or 0.92 percent to 2,688.63.
Holding firms advanced 55.48 points or 0.90 percent to 6,250.11 and industrials were up 97.19 points or 0.90 percent to 10,859.56.
Financials rose 3.21 points or 0.20 percent to 1,643.63 while services climbed 12.55 points or 0.58 percent or to 2,180.03. Of the most actively traded stocks, only Petron Corp. and Puregold Price Club Inc. were losers. Petron lost 7.24 percent or 92 cents while Puregold retreated 0.15 percent or 5 cents.
Petron’s share price fell sharply after the company said in a filing that its employee retirement fund has agreed to sell a block of 380 million shares at a 9.5 percent discount to its closing price on Monday.
Tuesday’s top gainers were PLDT, Ayala Land Inc., Metrobank, GT Capital Holdings Inc., Ayala Corp., Energy Development Corp., Universal Robina Corp., and Emperador Inc. Advancers outpaced decliners 100 to 81, with 41 shares unchanged. Shares traded totaled 1.6 billion worth P13.263 billion.
On Monday, the benchmark index rose 19.07 points or 0.27 percent to 7,027.58, while the wider All Shares inched up 3.40 points or 0.08 percent to 4,171.72.