LOCAL stocks ended higher on Friday on a technical bounce after the market’s free fall to the 7,300 levels earlier in the week.
The Philippine Stock Exchange index (PSEi) climbed 1.05 percent or 77.12 points to 7,389.30, while the wider All Shares index was up 0.76 percent or 33.09 points at 4,402.69.
Luis Limlingan, managing director of Regina Capital Development Corp., said the PSEi underwent a “technical bounce” on Friday after falling to 7,300 points from the 7,500-mark earlier in the week.
“Today, the market just went on a technical bounce due to a lack of local leads,” Limlingan said in a phone interview.
He sees support level for the main index at 7,350 points at the moment, and if this broken in the next two to three days next week, the index will like dip below the 7,300 line again.
Limlingan said investors will be watching out for central bank data due for release next week. He also expects investors to cash in on earlier gains to prepare for the initial public offering (IPO) of Pilipinas Shell Petroleum Corp.
On Friday, Pilipinas Shell said it has priced its IPO at P67 per share, which would allow the company to raise up to P19.5 billion. The offer period will run from October 19 to 25. The shares will be listed at the PSE’s Main Board on November 3.
All six sectors posted gains on Friday led by mining and oil, up by 2.55 percent.
Among the top-traded stocks, Universal Robina Corp. ended flat and Metro Pacific Investments Corp. declined. The rest were gainers including Ayala Land Inc., International Container Terminal Services Inc., Security Bank Corp., PLDT Inc., Ayala Corp., SM Prime Holdings Inc., Metropolitan Bank and Trust Company, and Megaworld Corp.
A total of 1.66 billon shares were traded on Friday worth P7.37 billion. Gainers trumped losers 132 to 54, while 40 issues were flat.
On Thursday, the bellwether PSEi lost 117.64 points or 1.58 percent to close at 7,312.18, while the wider All Shares index fell 60.24 points or 1.36 percent to 4,369.60.