PHL stocks trim gains after touching 8400 level
LOCAL stocks pared gains after briefly breaching the 8,400 level on Friday, tracking an Asia-wide rally following a new record close on Wall Street.
The Philippine Stock Exchange index (PSEi) climbed 0.20% or 16.87 points to 8,310.88 points, while the broader all-shares index inched up 0.10% or 4.79 points to 4,889.44 points.
The main index reached a record intraday high of 8,406.34 points on Friday morning.
“Markets are still going through what you call a continuous sideways consolidation between the height and the breakout points. From this consolidation, the investing public is looking at the development of fundamentals that is going on,” Summit Securities, Inc. Harry G. Liu said in a phone interview on Friday.
Mr. Liu noted investors opted to stay on the sidelines awaiting corporate results, among others.
“For now, I feel that everything is in place but not yet fully implemented,” Mr. Liu added, referring to the pending approval and enactment of the tax reform package.
By sectoral indices, mining and oil surged 2.62% or 356.96 points to 13,982.53 points, while holding firms climbed 0.99% or 82.63 points to 8,455.45 points.
On the other hand, property slipped 0.72% or 27.92 points to 3,856.39 points; while industrial fell 0.50% or 56.46 points to 11,113.18 points. Financials went down 0.24% or 4.73 points to 1,998.18 points; and services dropped 0.16% or 2.74 points to 1,748.91 points.
“Philippine markets returned to the green as US stocks notched new highs, coupled with prospects for solid growth. While Fed officials continued to suggest that another rate hike in Dec[ember] is forthcoming,” said Regina Capital Development, Corp. Managing Director Luis A. Limlingan in a mobile message.
Reuters reported the S&P 500 posted its sixth straight record high close on Thursday, its longest run since 1997, as investors cheered increased prospects for a tax overhaul with Congress moving closer to agreement on the budget resolution.
Advancers trumped losers at 99 to 96 as 49 issues were unchanged.
Value turnover rose to P7.34 billion from the P6.76 billion in the previous day as 1.21 billion shares changed hands.
After dumping shares since Monday, foreigners turned buyers on Friday with net purchases at P11.56 million, a reversal from Thurdsay’s selling at P41.96 million. – Janina C. Lim
