The local benchmark stock index inched up slightly on Friday as investors and traders stayed “mostly on the sidelines.”
The Philippine stock exchange index (PSEi) gained 24.48 points—despite losing in the noon session—or 0.40 percent to 6,161.21. The wider all-shares index added 4.95 points, or 0.13 percent to 3,761.62. Astro del Castillo, managing director of First Grade Finance, said that investors are cautious on putting their funds in the market as it “remains flat” and “volatile.”
“[Investors] do not want to engage. Nobody wants their funds to be caught up after the long weekend, plus the market is volatile at the moment,” he added.
Juan Rafael Supangco, research head of Angping and Associates Securities Inc., told The Manila Times that with the whopping near 400-point market drop on Thursday, bargain hunters prompted to take positions ahead of the long weekend.
“Today’s [market performance]is a continuation from yesterday’s sell off. Some who were able to bargain hunt yesterday will take profit today ahead of the weekend. Market will go down driven by sentiment but fundamentals will probably support the market at around 5,800,” Supangco said.
He added that the market performance was fueled by sentiments, with the US Federal Reserve ready to taper its bond buying a “major factor,” while the tropical storm that resulted in trading suspensions only had minimal impact.
“To some extent [the storm affect the market]but every minimal. No work for three days is bad for the economy. No clearing, businesses can’t transact so it might shave off some growth. Add to that the damages on the already slowing down agriculture sector,” Supangco explained.
All sectoral indices dipped except for holding firms which gained 1.27 percent, or 67.75 points to 5,406.82. Property, on the other hand, lost the most with a 0.77-percent drop, or 18.28 points to 2,371.93. Industrials went down a bit by 0.01 percent, or 0.74 points to 9,446.85, while financials went down by 0.03 percent, or 0.38 points to 1,481.03.
Services slid by 0.06 percent, or 1.19 points to 1,970.17, while mining and oil slumped by 0.03 percent, or 3.65 points to 14,042.46. The most actively traded shares include Metropolitan Bank and Trust Co., SM Investments Corp., SM Prime Holdings Inc., Philippine Long Distance Telephone Co., Ayala Land Inc., Ayala Corp., Alliance Global Group Inc., Universal Robina Corp., Megaworld Corp. and Globe Telecom Inc.
Decliners outnumbered advancers, 83 to 70, while 43 shares remained unchanged. Total volume ended at 918 million, while value turnover accounted to P8.5 billion. Summit Securities Inc. President Harry Liu said that trading is still “soft” but will eventually rally up to the resistance level of 6,500 for the next few days. Over the medium term, the market is seen undergoing consolidation while the long term is for it to move upward.
As trading resumed on Thursday after the three-day break, the PSEi dived by 5.96 percent, or 389.22 points to 6,136.73, while the broader all-shares index shed 5.49 percent, or 218 .26 points to 3,756.67.