Stock Market

PSEi inches higher as consolidation continues

Posted on July 26, 2017

THE MAIN INDEX inched higher on Tuesday as investors seemed to gain confidence in the administration’s direction following President Rodrigo R. Duterte’s State of the Nation Address (SONA) on Monday.

The bellwether Philippine Stock Exchange index (PSEi) rose 0.11% or 9.08 points to 7,971.72.

Meanwhile, the broader all-shares index fell 0.11% or 5.34 points to 4,753.33.

“The Philippine stock index managed to close a bit on the upside post SONA, positioning ahead of the sectors that will benefit most, and selling those that may be left behind the administrations platform,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile phone message on Tuesday.

Mr. Limlingan noted that mixed US markets also gave the index a push.

Overnight, the Dow Jones Industrial Average fell 66.9 points or 0.31% to 21,513.17; the S&P 500 lost 2.63 points or 0.11% to 2,469.91; and the Nasdaq Composite added 23.05 points or 0.36% to 6,410.81.

“The market is still continuing consolidating at this point. What is needed is really a real good news to breach the 8,000 level. But everything is consolidating, with investors waiting for further developments especially the design of the tax reform package,” Harry G. Liu, president of Summit Securities, Inc. said in a text message yesterday.

Sectoral indices were mixed. Property climbed 0.73% or 27.57 points to 3,800.11; holding firms rose 0.08% or 6.81 points to 7,906.13; and services inched up 0.06% or 1.09 points to 1,694.30.

Meanwhile, financials went down 0.72% or 14.27 points to 1,948.85; mining and oil slumped 0.61% or 79 points to 12,849.09; and industrials dropped 0.35% or 39.92 points to 11,153.17.

On Tuesday, decliners beat advancers, 142 to 65, while 46 issues were unchanged.

Value turnover stood at P6.23 billion, higher than the P5.85 billion logged on Monday, as 1.74 billion shares changed hands.

Foreigners continued to be net buyers at P573.39 million, up from the P79.85 million in net purchases recorded the prior trading day.

Southeast Asian stock markets marked time on Tuesday ahead of a US Federal Reserve meeting later in the day as investors looked for hints on the timing of the Fed’s next policy tightening.

Though the Fed is widely expected to keep interest rates unchanged at the two-day meeting which ends on Wednesday, investors will be watching for any fresh hints on whether it might raise interest rates again this year, and when it will begin paring its bond holdings.

Singapore shares rose as much as 0.5%, led by financial and telecom stocks.

Thai shares edged up 0.3% to one-week highs, while Malaysian shares were flat.

Vietnam shares gave up early gains to trade flat.

Indonesian shares dropped as much as 0.4%, with falls in consumer staples pulling down the index. -- J.C. Lim with Reuters