PSE index rallies past 7,800 on window dressing

THE MAIN INDEX climbed to the 7,800 level on Monday, ending a weak month that pulled the market to a one-year low on a positive note due to window dressing.

The bellwether Philippine Stock Exchange index ( PSEi) gained 1.27% or 98.23 points to close at 7,819.25 on the last trading day of April. The broader all-shares index likewise jumped 1.09% or 51.33 points to 4,723.16.

“As expected, a relatively quiet trading day was in session, as several key markets are heading into a Labor Day holiday [today]. Window dressing on the last day of April and the start of corporate earnings releases also drove the index to finish positive,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile phone message.

Papa Securities Corp. trader Gabriel F. Perez noted that the market’s three-day rally may indicate changing sentiment among investors.

“This is the third consecutive day that the PSEi ended in the green — effectively making a Three White Soldiers candlestick pattern. This formation marks a positive change in sentiment against a prevailing downtrend. We’ll need to watch out for its confirmation candle on Wednesday before jumping to immediate conclusions,” Mr. Perez said in an e-mail.

The bourse has been tagged as among the worst performing markets for the year after erasing more than $20 billion in market value since the start of 2018.

All sectoral counters ended in positive territory yesterday, led by a 1.83% increase in the mining and oil index or 190.14 points to 10,561.56. Holding firms rose 1.77% or 138.16 points to 7,908.50, while industrials firmed up 1.48% or 162.02 points to 11,110.36.

Services picked up 1.3% or 20.04 points to 1,559.17; financials added 1.17% or 22.89 points to 1,969.63, while property was 0.25% or 9.33 points higher to 3,622.17 at the market’s close on Monday.

Some 974.73 million issues switched hands, resulting to a value turnover of P6.41 billion, lower than the P7.05 billion posted last Friday.

Advancers outpaced decliners, 130 to 84, while 45 names were unchanged.

Net foreign outflows stood at P605.44 million on Monday, against the P744.73-million net sales recorded in the previous session.

Overseas, Wall Street indices ended mixed despite strong earnings results from tech firms. The Dow Jones Industrial Average shed 0.05% or 11.15 points to close at 24,311.19. The S&P 500 went up 0.11% or 2.97 points to 2,669.91, while the Nasdaq Composite index was relatively flat after adding 0.02% or 1.12 points to close at 7,119.80.

Asian indices, meanwhile, firmed up on the last trading day of the month after getting a boost from positive corporate earnings and easing geopolitical tensions. The leaders of North Korea and South Korea last week committed to declare an official end to the Korean War and finally restore peace in the Korean peninsula.