PSEi back at 7,100 on upbeat Q3 earnings

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THE benchmark Philippine Stock Exchange index (PSEi) rebounded on Thursday, climbing back to 7,100 points as investors cheered the initial releases of third-quarter corporate earnings results.

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After a volatile session which saw the main index slipping in and out of negative territory, the PSEi finished trade with a solid gain of 1.1 percent, rising 77.68 points to 7,170.99. The wider All Shares index likewise rose 35.98 points or 0.86 percent to 4,225.46.

Juan Rafael Supangco of Angping & Associates Securities Inc. said in a phone interview that despite the volatility during the session, the market was up on Thursday on optimism in the first batch and upcoming releases of the third-quarter earnings reports.

“It is due to the earnings season and anticipation of the holidays.

Investors are also looking forward to upcoming releases of featured companies in the next few days.”

Gab Aguila, equity analyst at DA Market Securities Inc., said in a text message that “Philippine equities ended upbeat today as third-quarter earnings season begins, breaking through 7,100 levels, the 30-day and 60-day moving averages which were acting as resistances.”

Aguila said investor confidence in the local equities market is coming back despite volatile market conditions.

However, he also said that the market is at a risk of sliding down further from the previous market correction and succeeding consolidations given that the technical indicators have “begun to show signs of a slowdown accompanied by a repeated testing of support levels.”

“Seeing that support was robust, investors are now more certain that the current level is an adequate position to base off from, and they begin to take in third-quarter corporate performance reports,” Aguila said.

“Looking into the next several days, a break through 7,200 should encourage more investors to add transaction to the recovery,” he added.

Meanwhile, Juanis Barredo, analyst at COL Financial Group Inc. said,
“I think the Fed act to pull out the stimulus is a good long-term sign,” referring to the US Federal Reserve’s decision to end its bond buying program.

“Our market may be responding to positioning for the MSCI changes next week, I think. This may be why JGS and Bloom were strong recently as people speculate on some changes. Also, PSEi seems to be holding over support well; also, small cap action is generating trade interest,” Barredo said.

Services and mining and oil recorded declines while the rest of the sectors gained. Services fell 0.34 percent or 7.41 points to 2,177.22, and mining and oil slipped 0.30 percent or 47.49 points to 15,624.19.

Meanwhile, holding firms were up 2.21 percent or 135.43 points at 6,275.42. The property index jumped 1.77 percent or 48.62 points to 2,790.48; industrial increased 0.33 percent or 37.96 points to 11,467.48; while financials inched up 0.06 percent or 1.02 points to 1,655.92.

PLDT, GT Capital Holdings and Alliance Global Group shares were the active losers on Thursday, while the gainers were Ayala Land, BDO, Metrobank, JG Summit Holdings, Unioil Resources and

Holdings, as well as Melco Crown (Philippines) Resorts. Advancers outnumbered decliners 103 to 70, while 40 shares were unchanged.

Volume traded reached 12.42 billion shares valued at P7.62 billion.

On Wednesday, the PSEi gained 1.22 percent or 86.19 points to 7,154.22, while the broader All Shares also rose 0.98 percent or 41.06 points to 4,218.29.

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