Stocks eke out gains as investors stay cautious

STOCKS closed in the green on the first trading day of 2017, although gains were meager even as investors started placing their bets in a year that is expected to see the outcome of what transpired in the past few months.

The Philippine Stock Exchange index (PSEi) went up by 20.67 points or 0.30% to 6,861.31 on Tuesday following a four-day break. The all-shares index also gained 10.49 points or 0.25% to 4,166.56.

“Players might begin to place their bets on stocks that have better prospects for this year. As most have already priced in the global benchmarks such as ‘Brexit’, the Fed[eral Reserve] rate hike and the elections, investors would now focus on how these would pan out for the year,” 2TradeAsia. com said ahead of yesterday’s session.

With stocks indeed remaining lackluster yesterday, A&A Securities, Inc. said in a report that it was guarded on its expectations for the year.

“The technical indicators aren’t exactly encouraging going into 2017 but the fundamentals are still embracing a rather optimistic narrative. These disparate suggestions, if you will, coming from the two major schools of thought in stock market analysis results in an even greater uncertainty — heightened risks on the outlook,” it said.

“Economic managers and the business sector have hinged their hopes on the verifiable numbers of the recent past while market investors appear to be casting some doubts on those hopes,” it added.

All sectoral subindices ended in the green except for services, which slipped by 1.36 point or 0.10% to close the session at 1,301.50.

However, increases were tepid, with the remaining sectors posting gains below 1%. Mining and oil led the increase, rising by 0.83% or 98.84 points to 11,956.60. Industrials followed, going up 0.66% or 70.96 points to 10,721.16; while holding firms climbed 0.27% or 18.91 points to 7,011.00; property ticked higher by 0.16% or 5.16 points to 3,071.62; and financials gained 0.08% or 1.42 point to close Tuesday’s session at 1,656.96.

Globe Telecom, Inc., Ayala Corp., PLDT, Inc., Pilipinas Shell Petroleum Corp. and SM Prime Holdings, Inc. were the five most active stocks.

Imperial Resources, Inc., Vitarich Corp. and Arthaland Corp. were the three top gainers, while Central Azucarera de Tarlac, Jackstones, Inc. and Omico Corp. led the losing stocks.

Value turnover came in at just P2.68 billion on Tuesday, well below the P6.31 billion recorded last Thursday, as 664.21 million shares changed hands.

Advancers beat decliners, 89 to 79, while 42 names closed unchanged. Net foreign buying was higher yesterday at P319.05 million from the P256.53 million recorded the previous session.

2TradeAsia. com placed the PSEi’s immediate support at 6,800 and resistance at 6,950,

Most Southeast Asian markets also began 2017 on weaker footing on Tuesday, little supported by signs of solid factory growth in China.