PSEi soars to 8,000 level on net foreign buying
By Arra B. Francia, Senior Reporter
THE MAIN INDEX soared past the 8,000 mark on Monday, outperforming international markets as it was supported by heavy foreign buying.
The 30-member Philippine Stock Exchange index (PSEi) jumped 1.44% or 114.86 points to close at 8,084.88 yesterday, marking its fifth day of gains. The broader all-shares index likewise racked up 0.99% or 48.64 points to 4,939.01.
“The market became an outlier today as foreign buying led the index above 8,000. The PSE got a total of P2-billion foreign buying for the past three trading days,” Unicapital Securities, Inc. Technical Analyst Jeff Radley C. See said in a text message on Monday.
Net foreign buying ballooned to P1.43 billion on Monday, about double Friday’s P734.41 million. This marks the third straight session of net inflows from foreign investors after 18 days of outflows.
The PSEi defied the negative performance of its international and regional peers as investors were concerned of geopolitical concerns.
“Investors continue to flock into the Philippine market, with today’s concentration in the property sector today as many are still wary of investing outside the country,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a separate message on Monday.
Last Friday, the Dow Jones Industrial Average dropped 1.41% or 354.84 points to 24,815.04. The S&P 500 index retreated 1.32% or 36.80 points to 2,752.06, while the Nasdaq Composite index fell 1.51% or 114.57 points to 7,453.15.
US President Donald J. Trump had warned of a 5% tariff increase on Mexican imports last week, on top of its already worsening relations with China.
Asian markets were mostly down on Monday on the back of lingering trade war concerns. Japan’s Nikkei 225 slipped 0.92% or 190.31 points to 20,410.88; China’s Shanghai Composite was down 0.3% or 8.61 points to 2,890.08; while the Hang Seng index slumped 0.03% or 7.23 points to 26,893.86.
Back home, all sectoral indices were in positive territory, led by property which firmed up 3.28% or 142.23 points to 4,468.05. Holding firms advanced 1.15% or 87.49 points to 7,664.80; industrials rose 0.89% or 104.53 points to 11,738.97; mining and oil climbed 0.78% or 58.22 points to 7,446.62; financials went up 0.47% or 8.12 points to 1,736.71, while services added 0.24% or 4.18 points to 1,687.30.
Some 1.33 billion issues switched hands valued at P10.02 billion, higher than the previous session’s P8.49 billion.
Advancers outpaced decliners, 120 to 72, while 48 names were unchanged.
“The PSE index is trading near the top of the range at 8,150. We remain bullish as long as it holds 7,900 and 8,000 as support. A break of 8,150-8,200 can send the index to 8,600 in the short term,” Unicapital’s Mr. See said.
