Investors turn attention to earnings reports
THE MAIN INDEX eked out last-minute gains on Tuesday after moving within a tight range as investors await the release of corporate earnings results in the coming weeks.
The 30- company Philippine Stock Exchange index ( PSEi) climbed 12.24 points or 0.16% to finish at 7,381.68, bouncing back from the previous session’s losses, while the all-shares index added 2.78 points or 0.06% to 4,465.38.
“The Philippine market tried to rebound on opening, but failed to sustain its strength and traded in negative territory until market-on-close orders pushed it to finish 12.24 pts or 0.17% higher at 7,381.68,” RCBC Securities, Inc. noted in its Stock Market Daily Recap.
Timson Securities, Inc. trader Jervin S. de Celis said in a mobile phone message that “[i]nvestors are anticipating the release of second-quarter corporate earnings from some blue-chip companies in the next few weeks, though market participants are being selective.” “Although most of the index stocks have rallied from the past two weeks, our index is still trading below its average volume turnover,” Mr. De Celis added.
For Papa Securities Corp. trader Gabriel Jose F. Perez, PSEi’s performance reflected “hesitation felt all around,” noting in an e-mail that “7,400… remains to be the initial obstacle to overcome, but with the low volume we’ve been seeing and stochastics being overbought it might be best to still exercise caution.”
The six sectoral indices were equally divided between those that advanced and losers.
Those that gained consisted of services (up 14.04 points or 0.98% to 1,443.23), industrials ( 44.76 points or 0.42% to 10,515.49) and property ( 7.04 points or 0.19% to 3,596.15), while those that lost were holding firms ( down 19.5 points or 0.26% to 7,230.25), financials ( 0.63 point or 0.03% to 1,823.20) and mining and oil (0.01% or 1.03 points to 9,658.62).
Some 456.02 million issues worth P3.59 billion changed hands, compared to Monday’s 919.84 million worth P4.28 billion. Stocks that gained narrowly outnumbered those that lost 91 to 90, while 55 others closed flat.
Net foreign selling persisted, growing 72.23% to P481.06 million from Monday’s P279.31 million. Timson Securities’ Mr. De Celis attributed this to investors’ anticipation of retail sales report and jobless claims in the United States this week that may persuade the US Federal Reserve to remain hawkish. “This may trigger further net foreign selling in that case,” Mr. De Celis said.
Half of Tuesday’s 20 most active stocks gained, led by Metropolitan Bank & Trust Co. (up 0.29% to P70 each); Ayala Land, Inc. (0.81% to P37.40); BDO Unibank, Inc. (0.86% to P129) and Universal Robina Corp. (1.63% to P130.80).
The same list showed eight that lost, including Security Bank Corp. ( down 0.19% to P211.60), Megawide Construction Corp. ( 4.41% to P18.20) and Bank of the Philippine Islands (1.14% to P95.50 apiece).