PSEi surges as market plays catch-up after break

By Arra B. Francia, Reporter
LOCAL EQUITIES surged on Monday as investors flooded the market after the long holiday break in anticipation of inflation figures to be released on Tuesday morning.
The benchmark Philippine Stock Exchange index (PSEi) climbed 1.02% or 73.15 points to close at 7,213.44. The broader all-shares index also added 0.48% or 20.99 points to 4,391.45.
“The index may have caught up to the positive momentum we all saw from markets abroad during the break. (Peso appreciation) may have also added some boost to the overall sentiment,” P2P Trade Online Sales Associate Gabriel Jose F. Perez said in an e-mail.
The Dow Jones Industrial Average index ended mostly higher last week, rising 2.36% on a weekly basis. It failed to hold gains on Friday however, tumbling down 0.43% or 109.91 points to 25,270.83. The S&P 500 index and Nasdaq Composite index followed suit, losing 0.63% or 17.31 points to 2,723.06 and 1.04% or 77.06 points to 7,356.99, respectively.
Mr. Perez also noted that some of the buying may be related to the release of October’s inflation print on Tuesday, citing the Department of Finance’s estimate of 6.5% — lower than September’s 6.7%.
The Bangko Sentral ng Pilipinas, meanwhile, projects inflation for October to have settled within 6.2-7%, lower than its estimate range of 6.3-7.1% last September.
“Philippine investors made bets ahead of the inflation data which is out [Tuesday] and the GDP on Thursday, as many are starting to become more bullish given the tone of the buying so far,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile message.
All sectoral indices moved to positive territory, led by services which jumped 1.63% or 23.91 points to 1,486.46. The mining and oil counter followed with a 1.22% or 117.45-point climb to 9,689.50.
Holding firms rose 1.15% or 80.87 points to 7,084.40; industrials advanced 1.13% or 120.50 points to 10,769.29; property improved 0.43% or 15.31 points to 3,510.80; while financials went up 0.2% or 3.34 points to 1,611.24.
Value turnover swelled to P22.57 billion, mainly due to the block sale of Energy Development Corp. (EDC) amounting to P14.57 billion. Shares in the company were crossed off from the exchange today as part of its voluntary delisting plan. Advancers outpaced decliners, 100 to 93, while 44 names were unchanged.
P2P Trade’s Mr. Perez noted that foreign investors remained in buying mode. Removing EDC’s P5.9-billion block transaction from foreign investors, the session would have recorded a net buying figure of P162 million, albeit lower than the previous session’s P229 million.
The analyst projects a resistance from 7,430 to 7,480 for the PSEi in the coming days.