Index snaps 2-day skid on technical rally

A technical correction and a pickup in prices of blue chip stocks allowed the bellwether index to snap a two-day skid.

The Philippine Stock Exchange index ( PSEi) recovered 0.33 percent or 22.77 points to end at 6,995.46, while the broader all shares index gained 0.30 percent or 13.12 points to 4,364.29.

“We had a technical rally since we are already below the 7,000 level,” said Freya Natividad, investment analyst at brokerage firm 2Trade-- Asia.com.

Natividad said share prices of several large cap companies also clawed back given previous days of being battered.

Overseas, the Dow Jones industrial average closed 0.3 percent or 43.16 points lower at 14,676.30 while the broader Standard & Poor’s 500 index inched up just 0.01 point to end at 1,578.79 as Wall Street was weighed down by disappointing corporate income reports.

Locally, most counters were in the positive territory, led by holding firms that added 1.38 percent or 86.24 points to 6,348.24. But financial companies bucked the trend, dropping 0.61 percent or 11.11 points to 1,801.30.

Turnover value slipped to P10.36 billion from P27.02 billion on Tuesday that was boosted by a P15.26-billion share sale of Melco Philippines Resorts.

Advancers outpaced decliners, 95 to 71, while 43 stocks did not change.