The stock market is showing early signs of the so-called “Santa Claus rally,” advancing for the third straight day on Wednesday.
The benchmark Philippine Stock Exchange index (PSEi) gained 0.22 percent or 16.52 points to close at 7,360.75, pulling back from an intraday high of 7,372. The broader All Shares index, however, dipped 0.04 percent or 1.72 points to settle at 4,314.87.
“Bets on the Santa Claus rally to close out the year continue to pour in, albeit not as aggressively, but enough to keep the measure in positive territory for a third straight day,” Justino Calaycay Jr., analyst at Accord Capital Equities Corp., said.
Calaycay said the market had shown no clear direction over the past few days amid mixed market influences such as the relatively negative result of the third-quarter gross domestic product (GDP), concerns over high valuations and positive prospects during the Christmas season.
“However, as we have mentioned in our previous notes, there may still be some room for an upside in the market up to the middle of next year when our buying becomes more selective, focusing on election-related counters,” Calaycay said.
“If the market is able to sustain its index to aggressively test, and possibly surpass, the 7,400 line before the countdown to 2015 ends,” he added.
Sectoral indices ended mixed: gainers were financials, up 0.008 percent or 0.14 points at 1,713.11; industrials increased by 0.32 percent or 38.87 points to 12,017.06; and holding firms rose by 0.39 percent or 25.24 points to 6,449.23. Services dipped 0.04 percent or 0.89 points to 2,169.68; mining and oil down 0.07 percent or 11.26 points at 15,836.21; and property slipped 0.06 percent or 1.62 points to 2,875.60.
Xurpas remained the most active issue since its market debut on Tuesday, up 41.18 percent or P2.45 to close at P8.40 apiece. Other active gainers included Universal Robina Corp., GT Capital Holdings Inc., Ayala Corp., Metropolitan Bank and Trust Company, Puregold Price Club Inc., and Ayala Land Inc.; SM Prime Holdings Inc. and PLDT were the active losers, while BDO Unibank ended flat.
Wednesday’s trade volume stood at 5.3 billion shares, valued at P8.49 billion, with decliners leading advancers 105 to 68, while 63 stocks remained unchanged.
On Tuesday, the benchmark stock index inched up 0.17 percent or 12.50 points to 7,344.23, while the wider All Shares index rose by 0.24 percent or 10.14 points to 4,316.59.