SharE prices bounced back on Tuesday after a two-day decline as investors took cues from upbeat trade in the US and regional markets.
The benchmark Philippine Stock Exchange index (PSEi) rose 0.75 percent or 58.15 points to close at 7,789.10, while the wider All Shares index gained 0.54 percent or 24.50 points to 4,522.09.
“Philippine shares bounced back from a two-session slump of 108.87 points or 1.39 percent as local investors rode on region-wide cheer, attempting to rebuild the month’s gains, which the preceding two-session drop practically erased,” Accord Capital Equities Corp’s Justino Calaycay Jr. said.
The US markets were up on Monday night as the Dow Jones Industrial Average posted a 228.11-point increase, the S&P 500 gained 27.79, and the Nasdaq rose 57.75 points.
Calaycay said that for the next few days, the market is in a “reactive” phase in which it will be moving “just alongside its peers in the region, or borrowing hints from overnight movements in US equities.”
“What matters to investors now is not that the market appears to have taken a pause, but as to what direction it will take when it comes out of this ‘stupor’,” Calaycay said.
“Earnings have been a much-awaited impetus, but the question still arises whether the outlook for earnings (quite positive) has already been discounted into share prices as the PSEi reached into record-after-record levels. In this case, the market will be merely waiting for possible ‘surprises’,” he added.
The services subindex was the only decliner among the sectoral counters on Tuesday, while the rest advanced behind the property sector’s 1.99-percent gain.
Only Philippine Long Distance Telephone Company (PLDT) and Metropolitan Bank and Trust Company (Metrobank) were losers among Tuesday’s active stocks, while Ayala Corp., Aboitiz Power Corp., BDO Unibank Inc., Universal Robina Corp., Ayala Land Inc., Energy Development Corp., SM Investments Corp. and Semirara Mining and Power Corp. all posted gains.