Largely influenced by global economic improvements, Philippine shares slightly regained on Tuesday from its hefty fall the other day.
Jun Calaycay, Accord Capital Equities Corp. analyst, said that a number of positive news have surfaced on the global stage such as US jobs, manufacturing numbers and corporate earnings, China’s inflation and the developments in Portugal and Greece.
“This should give the bulls some bullets as it continues to battle the bears,” Calaycay said.
“The benchmark index should try to establish a firm base around the 6,300-level as our own earnings season gets underway. This emay be the next source of optimism for the market to fuel another rally,” he added.
Today, Federal Reserve Chairman Ben Bernanke will speak as part of the institution’s 100th year anniversary.
“We do not expect any direct policy statements but the markets will be looking for hints,” Calaycay added.
After dwelling in the red during the early hours of trading, the Philippine Stock Exchange index (PSEi) still managed to make a slight recovery, regaining 8.11 points, or 0.13 percent to close at 6,327.02.
“Riding on an 88-point rise in the Dow, local share prices jumped in the minutes off the gates but started to taper off soon enough. Again lacking fresh incentives, the price surge was not accompanied by strong volumes, keeping its sustainability suspect and indicating investors’ general choice to keep to the sidelines and hold cash,” Calaycay explained.
The wider all-shares index inched up a bit by 1.65 points, or 0.04 percent to 3,876.21.
Of the six subsectors, only industrial and services managed to accumulate additional points. The rest registered flat losses.
The industrial counter gathered 92.48 points, or 0.98 percent to 9,569.97, while services rose by 4.63 points, or 0.24 percent to 1,903.53.
Holding firms retreated by 29.27 points, or 0.51 percent to end at 5,732.08, followed by financials, which went down by 3.74 points, or 0.23 percent to 1,595.66. The mining and oil, and property counters both declined by 0.17 percent.
Total value turnover fell short of P4 billion with no more than a billion shares traded. Losers still beat gainer, 81 to 57, with 46 issues unchanged.
According to Calaycay, the thin value turnover of the local market suggests that investors remain affected by the hovering concerns over the US stimulus program.