After idling in the red for the past three trading sessions, local stocks finally recovered on Tuesday as investors took cue on the current Philippine economic forecast, causing the index to inch up slightly.
Astro del Castillo, First Grade Finance managing director, said that the market bounced from a technical rally that was basically brought about by the current Philippine economic outlook.
“The technical bounce was triggered by strong collection of BIR [Bureau of Internal Revenue] and positive news in upgraded outlook on the foreign economic forecast,” del Castillo said over a phone interview.
He said, however, that the market is still in a consolidation mode which may last for the next few days.
“It is better for the market to consolidate before the next run-up,” del Castillo added.
The Philippine Stock Exchange index (PSEi) recovered from a three-day decline, regaining 0.72 percent, or 52.20 points to 7,327.58, while the wider all-shares index rebounded by 0.38 percent, or 16.90 points to 4,506.74.
Some improvements among the sectoral indices were also seen.
Property went up 1.94 percent, or 57.89 points to 3,047.63, followed by holding firms, which gained 51.99 points, or 0.79 percent to 6,597.90.
Industrial also registered an increase, rising 21.12 points, or 0.19 percent to 10,979.59, while financials went up by 3.57 percent, or 0.19 points to 1,891.56.
Mining and oil, however, fell 0.80 percent, or 140.88 points to 17,453.59, while services erased 7.35 points, or 0.34 percent to 2,121.38.
Decliners still dominated advancers, 100 to 70, while 49 shares were unchanged. For the third consecutive trading session on Monday, profit-taking prevailed over the local stock market and dragged the main index down.
The PSEi welcomed the week in the red, losing 4.49 percent, or 0.06 percent to 7,275.38, while the broader all-shares index went down by 0.14 percent, or 6.37 points to 4,489.84.
“Share prices edged lower on light volume as investors booked profits but stayed close to the market, selectively picking up shares ahead of a week full of economic numbers abroad,” Jun Calaycay of Accord Capital Equities Corp. said.