After listlessly trading for most of the morning session following declines on Wall Street overnight, the local bourse gained in a late session rally on Monday, breaking a two-day losing streak.
The Philippine Stock Exchange index (PSEi) closed higher by 0.56 percent or 43.35 points at 7,773.92, while the wider All Shares index finished up 0.58 percent or 26.18 points at 4,524.79.
The morning session was largely affected by the overnight losses on Wall Street. The Dow Jones Industrial Average was down 81.72 points, the S&P 500 lost 6.24 points, while the Nasdaq shed 24.36 points.
“The bounce-back was due to reports about the cut in interest rates in China, as well as the realized economic growth in the US. It is practically an encouraged buying as Asian markets also reacted to it,” Astro del Castillo, First Grade Finance Inc. managing director, said in a brief phone interview.
“We’ll just consolidate to the 7,700 to 7,800 levels behind positive sentiment from the first-quarter corporate results. Investors are on standby if growth will be sustained in the quarter,” he added.
Renz Cruz, analyst at F. Yap Securities Inc., said for the earlier trade, market “sentiment glided with the revised US fourth-quarter GDP [gross domestic product]number — easing 2.2 percent from 2.6 percent initially announced — although declines were limited to a positive close by select portfolio fund managers’ repositioning.”
“Portfolio re-allocations favored stocks set to announce positive first-quarter 2015 results,” he added.
For her part, DA Market Securities Inc. analyst Nisha Alicer told The Manila Times that the market is subject to “rotational activities” on a lack of local leads, reacting to investors’ view on external factors.
“The market is being cautious now. Local leads will look at external factors. People will start thinking about interest rates in the US. There will be profit-taking likely in the next few days,” Alicer said, noting that concerns have begun to emerge about valuations of some individual stocks.
Alicer said support level is seen at 7,485 points, while resistance is at the market’s all-time high level of 7,844.06 set on Feb 25. If the resistance level is broken, the next bar will be 8,000 points, she said.
Only the services index incurred losses among the sectoral counters, while the rest gained, led by the 1.39 percent increase in the mining and oil index due to the uptick in crude and oil prices over the weekend.
The most active companies were mixed with four advancers — Metro Pacific Investments Corp., Energy Development Corp., Ayala Land Inc., and SM Invetsments Corp. — and six decliners including Philippine Long Distance Telephone Company, BDO Unibank Inc., Universal Robina Corp., Puregold Price Club Inc., SM Prime Holdings Inc., and Alliance Global Group Inc.
Total volume reached 1 billion shares, valued at P8.24 billion. Gainers outnumbered losers 98 to 67, while 56 issues stood unchanged.
On Friday, the benchmark PSEi slipped by 0.44 percent or 33.82 points to 7,730.57, while the All Shares index dipped 0.27 percent or 12.08 points to 4,498.61.