Main index inches up on last-minute buying

Share prices traded mostly lower yesterday, but the main index managed to pare losses on last-minute buying in large cap stocks, aiding a return to positive territory at the close.

The benchmark Philippine Stock Exchange index (PSEi) finished flat at 6,814.67, up by just a hairline 4.33 points or 0.06 percent.

On the other hand, the broader All Shares index slipped in the red, ending at 4,141.72, down 13.51 points or 0.32 percent.

Total value turnover was robust at P10.667 billion. Market breadth was negative, 171 to 64, while 37 issues were unchanged.

For the sixth consecutive day, foreigners were net sellers. Yesterday, net foreign selling remained significant, breaching the P1-billion mark for the second straight session.

“PSEi reversed losses on bargain hunting. Local market fell by as much as 73 points, but losses were pared towards the end of the session, and reversed on market-on-close buying,” AB Capital Securities said in a market report.

Chris Mangun of AAA Southeast Equities said last minute buying propped up trade despite heavy losses earlier in the day.

“The PSEi managed to end the session with miniscule gains thanks to last-minute buying, despite suffering losses in early trading. Gains were led by largecap holding firms as investors returned to the ‘diversified-portfolio trade’ after President Duterte’s speech last night wherein he announced that restrictions would not be eased in Metro Manila until there was a rollout of vaccines,” Mangun said.

From a technical standpoint, the main index bounced off its 100-day moving average support after dipping below it for the first time since it successfully broke above it back in the middle of October 2020.