Share prices advanced in Tuesday trade, with market sentiment buoyed by the positive economic impact of low global oil prices.
Nickel miners led the gains, helping drive the main index up 0.55 percent but not enough to keep it above the psychological benchmark of 7,400 points at the end of the session.
The Philippine Stock Exchange index (PSEi) rose 40.64 points to close at 7,399, after it hovered above 7,400 for most of the day, while the wider All Shares index gained 0.42 percent or 18.03 points to 4,338.70.
Luis Limlingan, managing director at Regina Capital Development Corp., said in a phone interview the market was influenced by the positive indication of the oil price drop, and the 102-percent year-on-year increase in foreign direct investment in the Philippines just reported for October.
The property counter was the sole loser among the sectoral indices, though just by a slight 0.07 percent, while the other five gained, led by the mining and oil index, which climbed 1.97 percent or 325.22 points.
Among the most active stocks, nickel mining firms posted the biggest increase, with CMT up 7.76 percent and NIKL up 2.56 percent. Active property stocks dropped, including MEG, VLL despite Ayala Land’s advance. Other active gainers were MER, TEL, URC, LTG, MBT and AC.
Gainers outnumbered losers — 102 to 78 — while 44 issues finished unchanged. Volume reached 2.15 billion shares, valued at P8.93 billion.
DA Market Securities Inc. said the local market welcomed the decline in oil prices on Monday evening, seeing the benefit for the local economy despite the fall in the US equities markets overnight.
Global oil prices have plunged 5 percent — the lowest in almost six years, prior to which Goldman Sachs had warned that crude oil prices would drop further and that Gulf oil producers would not be cutting or easing production anytime soon.
On Monday, the PSEi took a break from a 10-day winning streak, losing 44.26 points or 0.60 percent to end at 7,358.36, while the All Shares index erased 16.23 points or 0.37 percent to 4,320.67
Trading on Thursday and Friday will be suspended in observance of the special holiday for Pope Francis’visit to the country, and will resume on Monday.
Limlingan said selling pressure may mount up again in Wednesday trade as traders try to cash out of the market before the start of this week’s holiday, but added that the market is set “to trade (between) 7,360 and 7,450 points next week.”