Stocks extend rally on late buying spree

Investors continued to test the 8,000 support level yesterday as share prices extended their climb amid geopolitical concerns over North Korea.

The benchmark Philippine Stock Exchange index(PSEi) inched up 0.18 percent or 14.15 points to 8,049.35, while the broader All Shares index closed 0.10 percent or 4.94 points higher to 4,766.93.

“Philippine markets managed to lightly finish in the green despite trading most of the afternoon in the red as it kept afloat the psychological 8,000 support mark,” Regina Capital business development head Luis Limlingan said.

“This despite still lackluster developments with US stocks futures falling on Monday still due to the recent nuclear test of North Korea,” Limlingan added.

RCBC Securities equity research analyst Jeffrey Lucero echoed Limilingan’s sentiments as he said the rally yesterday came at such peculiar timing, given the rising geopolitical concerns amid North Korea’s nuclear bomb test.

He said the market traded in red for most of the session, but buying at the close lifted the market, extending its rally.

“Note that despite the rally, volume remained low most likely still due to the ghost month and lack of catalysts on the local front,” Lucero said,

Most sectoral indices closed in the green except for Financials, which slighty dropped 0.32 percent or 6.42 points to 1,982.61.

Market breadth, however, was negative as decliners outnumbered advancers, 103 to 87, while 55 stocks remained unchanged.

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