PSE index climbs as investors pick up select stocks

THE LOCAL MARKET started the week strong as investors shopped for stocks seen to be profitable this year while still on the watch for other market influencers.

The bellwether Philippine Stock Exchange index ( PSEi) climbed by 0.92% or 66.75 points on Monday to close at 7,313.87.

The broader all shares index went up 0.66% or 29.27 points to 4,415.13.

“Several investors opted to cherry pick on select stocks that are expected to perform well this year,” said First Grade Finance, Inc. Managing Director Astro C. del Castillo in a text message yesterday.

Mr. Del Castillo noted that markets have digested sure bets of an interest rate hike from the Federal Reserve this month. He, however, said the PSEi is still expected to trade sideways in the coming weeks as investors anticipate market-moving news.

Meanwhile, Manuel Antonio G. Lisbona, president of PNB Securities, Inc., said foreign investors reentered the market yesterday and bid up certain index stocks such as SM Investments Corp., Robinsons Land Corp., and SM Prime Holdings, Inc.

“To get the bulls back into play, the market must close above 7,450. Otherwise it may stay within the trading range between 7,150 and 7,350,” Mr. Lisbona said in a text message, adding that attaining the targeted level within the week is “possible” so long as investors continue buying up index heavyweights and at same magnitude seen yesterday.

Property led the charge, increasing 1.22% or 39.75 points to 3,298.88; financials jumped 1.05% or 18.96 points to 1,821.28; services climbed 1% or 14.20 points to 1,432.34; holding firms increased 0.90% or 66.29 points to 7,412.19; and mining and oil edged up by 0.77% or 95.56 points to 12,455.15.

Only industrials finished in the red, declining 0.15% or 17.45 points to 11,078.93.

Advancers outnumbered gainers at 107 and 75, respectively, while 46 remained unchanged. Foreigners turned buyers, with net purchases coming in at P760.49 million, a reversal of Friday’s net selling worth P339.63 million.

Value turnover increased to P7.62 billion from the previous trading day’s P5.47 billion, with 1.70 billion shares changing hands.

Meanwhile, most Southeast Asian stock markets fell in thin trade on Monday after US Federal Reserve Chair Janet L. Yellen pointed to a March rate hike, and on rising geopolitical tensions in East Asia and news of slower growth in China this year.

Ms. Yellen in a speech in Chicago on Friday all but confirmed market expectations for an interest rate rise in March barring any sharp deterioration in economic conditions.

“We are following a general trend in Asian markets right now. Last week’s speech from Yellen was very hawkish and she hinted at a rate hike for March. So, I think investors are just risk off right now,” said Victor F. Felix, an equity analyst with AB Capital Securities, Inc. with