Window dressing props up stocks

The benchmark Philippine Stock Exchange index (PSEi) continued to strengthen yesterday, surging by 127.11 points, or 1.79 percent, to settle at 7,193.68.

Similarly, the broader All Shares gauge gained 69.55 points, or 1.60 percent, to close at 4,392.78.

All counters closed in positive territory with the property index leading the gainers.

Total value turnover, meanwhile, reached P7.125 billion. Market breadth was positive, 120 to 82 while 43 issues were left unchanged.

Traders said semester end window dressing by fund managers helped prop up the index.

“Semester-end window dressing saves the day with the PSEi gaining 127.11 points to close at 7,193.68. Value turnover was at the highest for the week with P7.1 billion with a large portion happening at the close. Foreigners were also net buyers today of P526 million, the largest net foreign buying figure since last May 11,” said Gio Perez of Papa Securities.

At the same time, he said, as a caveat foreigners may only have been net buyers yesterday due to window dressing.

Net foreign buying days have always been short-lived with the longest period since February only lasting for two consecutive days.