Bourse extends gains to close in on 8,000 mark

THE MAIN INDEX closed in on the 8,000 level on Wednesday as investors resorted to bargain hunting ahead of President Rodrigo R. Duterte’s second State of the Nation Address (SONA) on Monday next week and the release of second-quarter earnings reports.

The Philippine Stock Exchange index ( PSEi) touched 8,005 intraday but failed to sustain momentum and ended rising just 19.98 points or 0.25% to 7,972.90 — its third consecutive day of closing gains — while the broader all-shares index climbed 20.28 points or 0.43% to 4,775.96. The PSEi last touched the 8,000 mark on June 15 at 8,028.22.

“Philippine markets continued gradual bargain hunting ahead of both the SONA and earnings season, since US markets closed mixed Tuesday with falling bank shares and rising tech stocks,” said Regina Capital Development Corp. Managing Director Luis A. Limlingan in a mobile phone message on Wednesday.

Mr. Limlingan described as a “less cheery picture” on US figures as the Federal Reserve Bank of New York’s Empire State manufacturing index dropped to 9.8 in July from June’s 19.8.

“The bulls will likely attempt another push through resistance, but it sees more likely to me that selling pressure will be greater,” PNB Securities, Inc. President Manuel G. Lisbona said in a text message yesterday.

Mr. Lisbona noted that value turnover still remained strong at P7.89 billion — up from Tuesday’s P6.49 billion — as 2.02 billion shares changed hands, signaling “robust” investor participation.

Advancers outnumbered losers 116 to 80, while 59 issues were unchanged.

Foreigners remained buyers at a net P158.11 million, just a little more than half Tuesday’s P275.29 million.

Two of six sectoral indices declined yesterday: financials fell 4.15 points or 0.21% to finish 1,959.24, while holding firms inched down a relatively flat 0.55 of a point or 0.007% to close 7,954.52.

In contrast, services went up 16.80 points or 1.005% to close 1,688.41, property gained 22.40 points or 0.59% or to 3,773.38, industrial increased by 60.82 points or 0.54% to 11,245.72, while mining and oil rose by 54.14 points or 0.42% to finish 12,860.

The local bourse was in step with Asian peers: the Nikkei 225, the Tokyo Price Index, Hong Kong’s Hang Seng, Shanghai- Shenzhen’s CSI 300, Australia’s S&P/ASX 200 and MSCI AC Asia Pacific rose 0.10%, 0.09%, 0.56%, 1.71%, 0.79% and 0.39%, respectively.

Stocks that gained were led by Semirara Mining and Power Corp. ( 1.37% to P162.30 each); BDO Unibank, Inc. ( 0.08% to P122.20); International Container Terminal Services, Inc. (1.55% to P105); DMCI Holdings, Inc. (3.15% to P15.72); Jollibee Foods Corp. (1.57% to P220.40) and SM Investments Corp. (0.25% to P797.50).

Those that retreated were led by Metropolitan Bank & Trust Co. (-1.34% to P91.70 apiece); Ayala Land, Inc. (-0.12% to P41.70) and Metro Pacific Investments Corp. (-1.44% to P6.85). —