Shares rebound on end-quarter window dressing
AS EXPECTED by analysts, the Philippine Stock Exchange index (PSEi) managed to wrest gains to finish 62.20 points or 0.79% higher at 7,876.37 on the first day of a shortened trading week that many see as a time for end-quarter window dressing.
“Philippine markets started their window dressing to kick off the last trading week of the first half capitalizing on US equities surging on opening,” said Luis A. Limlingan, business development head at Regina Capital Development Corp.
He said the main index’s climb happened despite US shares’ mixed finish, with financials’ rise offset by losses of large-cap technology stocks. Financial stocks gained ahead of the second part of a stress test conducted by the US Federal Reserve on US banks.
Like the PSEi, the wider allshares index managed to close positively, gaining 25.18 points or 0.53% to finish at 4,704.47.
Local sector indices were mostly up on Tuesday, with property stocks recording the biggest gain of 50.13 points or 1.38% to 3,665.24. Services advanced 19.06 points or 1.11% to close at 1,733.31, financials moved 16.63 points or 0.86% higher to 1,943.67, mining and oil also gained 105.55 points or 0.84% to 12,586.45, while holding firms edged 32.30 points or 0.41% up to finish at 7,815.42.
The industrial sector was the only loser, declining by 16.15 points or 0.14% to end 11,019.79.
UNDERLYING WEAKNESS
Still, advancers were outnumbered by losers 94 to 103, while 50 issued closed unchanged. Trading value rose 33% to P9.17 billion, from Friday’s P6.90 billion.
Yesterday saw net foreign selling nearly double to P718.52 million from Friday’s P374.82 billion.
Analysts last weekend said trading this week will likely be fueled by first-half positioning of fund managers, who have been waiting for a catalyst that will help the index to rise past the 8,000 level, and stay above it.
For some, however, uncertainty remains over the PSEi’s strength to climb past that crucial mark, with Miko S. Sayo, trader at Angping & Associates Securities, Inc., watching if the market could hold above 7,7507,800.
Yesterday’s top gainers included Lorenzo Shipping Corp., PetroEnergy Resources Corp., Omico Corp., MJC Investments Corp. and IRC Properties, Inc., while top losers included Keppel Philippine Holdings, Inc. “B”; The Philodrill Corp.; Waterfront Philippines, Inc.; Filipino Fund, Inc. and A. Brown Co., Inc.
The most active stocks were led by Universal Robina Corp.; International Container Terminal Services, Inc.; Melco Resorts and Entertainment (Philippines) Corp.; Ayala Land, Inc. and Metro Retail Stores Group, Inc.
Melco told the stock exchange on Tuesday that its board had approved a hike in the company’s authorized capital stock to P11.9 billion, double the current P5.9 billion, ahead of a planned equity offering to repay debt and bankroll expansion.