The local benchmark stock index went up for the third straight day on Friday, but profit-taking is looming in the horizon.
Juanis Barredo, technical analyst of COL Financial, said that the Philippine stock market went up on Friday because US and Europe markets ascended.
“US markets and Europe was up and [the local market]followed suit. Today’s gains may be mitigated as we had been up for three days and some profit-taking may come in,” she added.
Astro del Castillo, First Grade Finance Inc. managing director, said that foreign buying was active in the rise of the market.
“For now, global market movements are also positive, with Dow Jones up as well as markets in the Pacific region,” he said in a phone interview.
Del Castillo also said that the local market is still susceptible in the trend overseas, but the good part is that long-term buyers have entered the market.
The Philippine Stock Exchange index (PSEi) registered a 2.17-percent increase, or 137.28 points to close at 6,465.28. The broader all-shares index, on the other hand, moved up by 1.40 percent, or 54.43 points to 3,932.04.
The sectoral indices also went up, with financials slightly increasing by 0.56 percent, or 9.05 points to 1,623.84, while industrials surged by 1.50 percent, or 145.45 points to 9,815.78.
Mining and oil rose by 3.39 percent, or 446 points to 13,631.84, while holding firms expanded by 2.29-percent, or 129.73 points to 5,799.23.
Services rallied by 1.88 percent, or 35.76 points to 1,940.20, while property leaped by 1.23 percent, or 30.68 points to 2,524.98.
Only SM Prime remained neutral among the most actively traded companies on Friday, while Alliance Global Group Inc. and Metro Pacific Investments Corp. slumped.
The rest of the top 10 active companies went up including SM Investments Corp., Ayala Land Inc., Ayala Corp., Philippine Long Distance Telephone Co., BDO Unibank, Metropolitan Bank and Trust Co. and Universal Robina Corp.
Gainers outnumbered losers, 96 to 71, while 47 issues were unchanged.
Total value turnover expanded to P15.30 billion, while volume turnover hit 7.53 billion shares.
“The market would go under correction before it reaches 6,500 levels, and then it would consolidate after. We are in an uptrend for many days so the market needs to have profit-taking. After that it would go under consolidation, but remaining sensitive to the trend overseas,” del Castillo said.
“The market is also near resistance level and this may add some pressure into the market into the next few days,” Barredo said.
The PSEi gained 209.06 points on Thursday, or 3.42 percent to 6,328, while the wider all-shares index added 117.94 points, or 3.14 percent to 3,877.61.