Local stocks bounced back on the end of the trading week, following its poor performance Thursday, May 3, as the market went under “oversold condition.”
The Philippine Stocks Exchange index (PSEi) climbed 11.09 points or 0.14% on Friday at 7,546.19, the first time it went up since markets resumed from the May 1 holiday.
The all-shares index also rose 2.82 points or 0.06%, closing at 4,605.3 on the week’s end.
“Expect some rally to ensue very soon. But don’t expect any reversal except that this downside has caused a medium term, very smart for a while due to the interest rate, due to the China situation with America, etc.,” Summit Securities Inc. President Harry G. Liu said.
But he clarified there is no negative crisis that would put the market in a long-term bear.
“Because of the thin market, there’s a lack of demand but there’s no fundamental whatever that is a big crisis. It’s purely day-to-day market condition absorbing the present news that’s in the market–the interest rate, the central bank adjusting,” Mr. Liu said, saying the market is on oversold condition.
“I expect a consolidation to follow the next few months,” he added.
Only two sectors ended in the green, led by holding firms that added 81.12 points or 1.08% at 7,592.15. The other sector was industrials, which went up 15.5 points or 0.14% at 10,948.
Mining and Oil was the biggest loser, shedding 98.57 points or 0.94% to close at 10,311.39. It was followed by property which lost 40.61 points or 1.14% at 3,520.39.
Services also headed south, falling by 6.98 points or 0.46% at 1,511.15. Financials was down 2.25 points or 0.11% at 1,906.87.
The market report showed more decliners than advancers, tallying 107 versus 88. Thirty-eight remained unchanged.
More foreigners were buyers than sellers, recording a net foreign buying of P532.119 million. — Denise A. Valdez
