BUYING pressure persisted on Tuesday and lifted the PSEi to 7,300 level as investors bought into oversold issues and found solace in the thought that the economic policies of US President Donald Trump would go well despite the failure of his healthcare bill.
The benchmark PSEi gained 85.49 points or 1.18 percent to close at 7,331.46. The broader All Shares also was up 41.21 points or 0.94 percent at 4,411.21.
“The index was sold [on Monday]after the failed healthcare bill, but I think it recovered today because of the global optimism toward Trump’s economic policies,” Joylin Telagen, equity analyst at IB Gimenez Securities Inc., said.
On Friday, the US House of Representatives pulled the plug out of the healthcare bill after failed to draw enough support from Trump’s Republican Party. But reports have it that global markets turned a blind eye to this and focused instead on the prospects of upcoming economic policies, particularly tax reform.
Telagen said the PSEi “may welcome” some gains to the 7,400 resistance level this week, fueled by end-of-quarter window dressing.
Among the sectoral indices, the Mining and Oil declined by 0.43 percent while Holding Firms led the pack with a 1.70 percent gain.
International Container Terminal Services Inc. was the sole loser among the issues trade, while property giants SM Prime Holdings Inc. and Ayala Land Inc. were unchanged in active trading. Among the top gainers were SM Investments Corp., LT Group Inc. and Metropolitan Bank and Trust Company.
More than 1.6 billion shares were traded, valued at P6.6 billion. Advancers led decliners, 100 to 80, while 48 shares were unchanged.
On Monday, the PSEi was down 0.32 percent or 23.65 points at 7,245.97, while the All Shares decreased by 6.74 percent or 0.15 points to 4,370.