PSEi settles above 7,300, highest in 2 months
LOCAL STOCKS advanced for the sixth straight session, with the main index rising above the 7,300 mark and hitting a two-month high, as investors continue picking up oversold issues and remain positive on the world economy’s prospects.
The bellwether Philippine Stock Exchange index ( PSEi) closed 88 points or 1.20% higher at 7,364.34 on Tuesday, posting its highest reading since ending at 7,404.80 on Oct. 28 last year.
The PSEi traded within the positive territory throughout the session, opening at 7,278.57 and reaching an intraday high of 7,371.84. The index touched a low of 7,276.72, which remained higher than its 7,276.34 finish on Monday.
The broader All- Shares index, meanwhile, gained another 50.98 points or 1.16% to reach 4,417.13 toward the end of the session.
“The market went up again as momentum continues to build up buying pressure,” Frank Gerard A. Barboza, equity trader at AP Securities, Inc. said in a mobile phone message, noting the market has started seeing the “January effect.”
Value turnover thickened to P8.95 billion, after 5.61 billion shares exchanged hands, from the P5.25 billion recorded on Monday. Net foreign buying, however, decreased to P180.38 million from P202.11 million.
“Telco giants led the way again for the third day as buyers try to ride the current market strength,” Mr. Barboza noted, with Globe Telecom, Inc. and PLDT, Inc. emerging as the second and third most actively traded stocks.
All counters posted gains, led by the services sector that marched 29.72 points or 2.11% toward 1,434.37.
The property sub- index, meanwhile, rose by 57.05 points or 1.73% to 3,338.24; mining and oil by 198.83 points or 1.60% to 12,583.95; industrial by 111.01 points or 1% to 11,171.74; holding firms by 59.71 points or 0.80% to 7,456.55 and financials by 7.06 points or 0.40% to 1,765.04.
Advancers trumped decliners, 129 versus 74, while 41 names were unchanged.
Stocks also benefited from the decline of US markets that pushed investors to emerging markets for refuge, Luis A. Limlingan, head of business development at Regina Capital Development Corp., said in a text message.
US stocks declined after oil prices plunged 4% on higher drilling rig count and concerns over Iraqi’s compliance with production cuts, Mr. Limlingan noted.
The local market also tracked peers in Southeast Asia, which mostly headed north as encouraging economic data from China kept sentiment upbeat, according to Reuters.
The producer price index in China exceeded expectations, hitting more than 5-year highs in December, while consumer inflation remained benign as food prices rose at a more modest pace, Reuters reported.
“We see rotation to previously oversold issues and now traders are looking to catch up to the trend. There might be little room for this surge, however, as we now get closer to 7,400 level,” Mr. Barboza said.