Stocks mixed as PSEi rebounds from weeklong losses

Font Size

PSE BGC bells

SHARE prices were mixed in thin trading, with the benchmark index rising after a string of post-holiday losses as investors were enticed by the market’s oversold conditions, though most individual stocks closed lower.

The Philippine Stocks Exchange index (PSEi) rose 11.09 points or 0.14% to 7,546.19, the first gain since trading resumed after the May 1 holiday.

The all-shares index rose 2.82 points or 0.06% to 4,605.3.

“Expect a rally to ensue very soon,” Summit Securities Inc. President Harry G. Liu said, adding that market participants remain concerned about the direction of interest rates and the US-China trade dispute.

But he added that no definitive negative factors are present that are of sufficient gravity to justify long-term bearishness.

“Because of the thin market, there’s a lack of demand but there are no fundamental signs whatsoever that point to a big crisis. It’s purely day-to-day operations absorbing the news that’s available,” like interest rate moves by the central bank in response to the latest inflation readings, Mr. Liu said. He added that the market is oversold.

“I expect a consolidation to follow in the next few months,” he said.

Aniceto K. Pangan, Diversified Securities, Inc. equities trader, said the rise in the PSEi was driven by weaker-than-expected inflation.

“The market moved up today as (April) inflation was only 4.5%, lower than the BSP (Bangko Sentral ng Pilipinas) estimate of 4.7%. Investors went bargain-hunting after shares turned oversold yesterday,” he said.

He added, “The market will continue to be volatile until the government comes up with appropriate policies to address the upward inflationary trend within the manageable range of 2% to 4%.”

Only two sectors ended higher: holding firms, which added 81.12 points or 1.08% to 7,592.15, and industrials, which rose 15.5 points or 0.14% to 10,948.

Mining and Oil was the biggest loser, shedding 98.57 points or 0.94% to 10,311.39. Property lost 40.61 points or 1.14% to 3,520.39.

Services fell 6.98 points or 0.46% to 1,511.15. Financials fell 2.25 points or 0.11% to 1,906.87.

Decliners outnumbered advancers 107 to 88. Thirty-eight remained unchanged.

Foreign investors were net buyers of P532.119 million. — Denise A. Valdez