PSEi back to 7,800 pts
Philippine shares opened the week in upbeat trade as bargain-hunters dominated the sessions, ending the market’s three-day fall and driving the benchmark index back to the 7,800-point level.
The Philippine Stock Exchange index (PSEi) rose 101.62 points or 1.32 percent to finish at 7,816.44. The wider All Shares index gained 44.39 points or 1 percent to 4,497.39.
Juan Rafael Supangco, research head at Angping & Associates Securities Inc., said the market drew bargain-hunters as prices have hit attractively low levels after a three-day decline last week.
“I think more bargain-hunting [drove the market]after being sold down for three days. The market may also take leads from abroad and earnings releases,” Supangco said in a text message.
“I think [there will be]a short-term rally for the week but still, downside pressure [will persist]as the fund bias now is towards North Asia because of QE [quantitative easing]or a possible QE [in Russia],” he added.
Since last month, reports have been circulating in the market that the Russian central bank is looking at a prospective quantitative easing (QE) program that could lift the economy out of recession this year. But the Russian central bank has ruled out such speculation given the threat of defaults haunting its banking sector.
Alexander Adrian Tiu, investment analyst at AB Capital Securities Inc., said aside from bargain-hunting, the local equities market was also supported by weaker Chinese data, which further fueled talk of easing and resulting liquidity in the global markets.
“Weaker Chinese data fueled speculation of further easing and liquidity. Also, investors were hunting for bargains following consecutive losses last week,” Tiu said.
“We see the index testing resistance at 7,840 to 7,860, with a push above this level opening the index to 7,900. As for the outlook, investors will look into earnings releases and [April] inflation data tomorrow for guidance,” he added.
All sectoral indices finished in positive territory on Monday, led by the services sector with a 2.12 percent gain.
Metropolitan Bank and Trust Company was the sole loser at the close of trade. Most of the actively traded stocks gained, including the Bank of the Philippine Islands, Ayala Land Inc., Universal Robina Corp., Philippine Long Distance Telephone Company, SM Prime Holdings Inc., Energy Development Corp., SM Investments Corp., BDO Unibank Inc., and GT Capital Holdings Inc.
Total trade volume stood at 879.97 billion shares, while value turnover reached P8.86 billion. Of the total issues traded, 96 advanced, 77 fell and 56 ended unchanged.
On Thursday, the bellwether PSEi fell 110.65 points or 1.41 percent to 7,714.82, while the wider All Shares index lost 43.22 points or 0.96 percent to end at 4,453. Financial markets were closed on Friday as the nation observed Labor Day.