Home Editors' Picks PSEi closes higher on bargain hunting, Wall St.
PSEi closes higher on bargain hunting, Wall St.
THE LOCAL MARKET closed in green territory on Tuesday as US indices also rose.
The Philippine Stock Exchange index (PSEi) rose 102.54 points or 1.68% to 6,207.72 while the broader all shares index increased 48.31 points or 1.34% to 3,645.17.
Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message that local shares closed on a positive note as Wall Street also increased as traders ignored rising coronavirus disease 2019 (COVID-19) cases.
US markets were gainers on Monday. The Dow Jones Industrial Average index went up 2.32%; the S&P 500 index gained 1.47%; and the Nasdaq composite index inched up 1.20%.
Philstocks Financial, Inc. Research Associate Claire T. Alviar said the local market rebounded along with positive performances from US markets while waiting for the government’s announcement of community quarantine guidelines for July.
“The bourse rebounded from (its) 50-day exponential moving average (EMA) after the market fell on that line yesterday that triggers bargain hunting today. This was coupled with the month-end window dressing,” Ms. Alviar said in a mobile phone message.
All sectoral indices closed in positive territory on Tuesday. Financials went up 29.24 points or 2.42% to 1,233.96; holding firms jumped 140.12 points or 2.21% to 6,453.34; services climbed 20.75 points or 1.5% to 1,403.68; mining and oil improved 62.36 points or 1.21% to 5,210.27; industrials rose 88.56 points or 1.16% to 7,702.41; and property advanced 4.86 points or 0.16% to 3,050.45.
Ms. Alviar noted weak investor participation was evident in the value turnover on Tuesday. Value turnover stood at P6.47 billion with 857.27 million issues switching hands, higher than Monday’s value turnover of P5.55 billion.
“The value turnover (on Tuesday) is lower than the month-to-date average of P8.14 billion as investors await the decision of the government on the new community quarantine guidelines for July,” Ms. Alviar said.
“We think that investors are pricing in the gradual reopening of the economy, which we expect a further ease of restrictions, and more businesses will reopen,” Ms. Alviar added.
Advancers outnumbered decliners, 118 to 70, while 54 names closed unchanged.
Net foreign selling was at P833 million, lower than P907.99 million on Monday. For Timson Securities, Inc. Head of Online Trading and Trader Darren Blaine T. Pangan, investors are still cautious over rising COVID-19 cases.
“Foreigners were net sellers for the day amounting to around P833 million, as investors are still playing cautious over the uptrend seen in COVID-19 cases both in the country and in major economies across the globe,” Mr. Pangan said in a mobile text message.
“6,100 remains a key level of support as it coincides with the simple moving average…, while 6,300 may be the nearest resistance area. We may have to observe this week if foreigners continue to be net sellers of the local market,” Mr. Pangan said. — Revin Mikhael D. Ochave