Stock Market

By Krista A. M. Montealegre, Senior Reporter

Select buying props up PSEi for 2nd straight day

Posted on October 01, 2015

THE BLUE-CHIP Philippine Stock Exchange index (PSEi) firmed up yesterday, shrugging off a one-hour delay in the start of trades, as investors picked up select stocks that were heavily sold in the previous sessions.

The benchmark PSEi jumped 34.69 points or 0.5% to close at 6,893.98, extending the local barometer’s gains to a second straight day. The all-shares index added 7.58 points or 0.19% to finish at 3,972.44.

“We ended up 34 points, but that was just because of forced closing at the end. We should have closed flat,” Miko A. Sayo, trader at Angping & Associates Securities Inc., said by phone.

“It’s just really window dressing. The trend for the market is weaker, but the Philippines bucked the trend,” Miguel A. Agarao, analyst at Wealth Securities, Inc., said in a separate phone interview.

Likewise, investors picked up select stocks that were beaten down in the past several sessions with the stock market trading at its lowest level since August when global markets were rocked by China’s surprise devaluation of its currency, Lexter L. Azurin, head of research at Unicapital Securities, Inc., said.

The local equities market started weak, which analysts attributed to the one-hour delay in the market’s opening to 10:35 a.m.

The delay had an effect on volumes in the morning session, but it was no longer evident at the close of trading, Wealth Securities’ Mr. Agarao said.

Trading volume picked up to P8.52 billion yesterday after 1.54 billion shares changed hands, from the P6.99 billion recorded on Tuesday.

“There’s a bit of a glitch in the system so the market started slow,” Unicapital Securities’ Mr. Azurin said.

“There’s not much catalyst happening in the market. Investors are generally on the sidelines since there are still those concerns externally specifically in China and the US,” he said.

Subindices finished mixed. Property rose 38.33 points or 1.35% to 2,858.09 and holding firms jumped 50.31 points or 0.78% to 6,457.22.

In contrast, mining and oil tumbled 178.33 points or 1.63% to 10,721.74; services shed 4.42 points or 0.26% to 1,656.65; financials lost 4.01 points or 0.26% to 1,531.38; and industrial slid 25.21 points or 0.23% to 10,651.65.

Decliners beat advancers, 96 to 80, while 36 issues were unchanged.

Still, foreigners went into buying territory with net purchases of P464.17 million recorded yesterday, a turnaround from the net outflow of P622.54 million logged in the previous session.

“We expect trading to be quiet for this week. There’s not really much news that we’re looking at that can move the market significantly,” Mr. Azurin said.

“It (the PSEi) might stay within a range in the next few days, probably between 6,900 and 7,100 for now,” he added.