LOCAL EQUITIES surged on Monday, bucking the sell-off in international markets last Friday, to make way for early window dressing for November.
The benchmark Philippine Stock Exchange index (PSEi) went up 0.78% or 57.69 points to close at 7,397.87 yesterday. The broader all-shares index likewise gained 0.72% or 31.86 points to finish at 4,441.09.
“I think the market managed to move higher despite foreign selling because of continued local bargain hunting of selected stocks ahead of short trading days and month-end,” IB Gimenez Securities, Inc. Research Head Joylin F. Telagen said via text.
“However, for the week, I expect sideways trading due to short trading week with possible upward bias due to month-end window dressing and possible Santa Claus rally next month.”
A Santa Claus rally is a seasonal phenomenon wherein indices typically increase due to optimism during the holidays, and the expected rise in stock prices in January.
Meanwhile, Papa Securities Corp. Head of Marketing and Business Development Arbee B. Lu noted that the rally was led by some of the most beat down stocks this year, such as Aboitiz Equity Ventures which soared 11.11% and Semirara Mining and Power Corp., which added 5.08%.
“We continue to expect the index to carry on trekking upwards to at least 7,430, our next resistance level,” Ms. Lu said in an e-mail.
The PSEi shrugged off weakness in US markets last Friday, which saw the Dow Jones Industrial Average drop 0.73% or 178.74 points to 24,285.95. The S&P 500 index shed 0.66% or 17.37 points to 2,632.56, while Nasdaq Composite index fell 0.48% or 33.27 points to 6,938.98.
Meanwhile, Asian markets were mostly higher on Monday on optimism that US President Donald J. Trump and Chinese President Xi Jinping’s upcoming meeting will ease trade tensions between the two countries.
“While the foreign markets aren’t looking as optimistic, we’re glad to note that the past few days have seen a resilient PSEi, as the local index gained +3.6% vs. the Dow’s -5.0%. We might just see a similar case this week,” Ms. Lu said.
The industrials counter was the lone index that posted losses, albeit at a meager 0.08% or 9.05 points to 10,774.59. The rest went up, led by mining and oil which jumped 3.35% or 280.65 points to 8,653.61.
Holding firms went up 1.25% or 89.81 points to 7,239.40; services climbed 1.18% or 16.60 points to 1,415.07; property advanced 0.72% or 26.05 points to 3,600.21; while financials gained 0.35% or 6.18 points to 1,745.37.
Advancers outpaced decliners, 106 to 74, while 50 names were unchanged.
Some 1.70 billion issues valued at P6.88 billion switched hands, down from the previous session’s P14.77 billion.
Foreign investors reversed their buying position, recording net sales of P631.89 million on Monday versus Friday’s net inflow worth P9.48 billion. — Arra B. Francia

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