PSEi ends above 8,000 despite lackluster trade

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THE Philippine Stock Exchange index (PSEi) managed to finish above 8,000 even after trading for most of Tuesday afternoon below the critical mark largely because of regional security worries, analysts said.

The bellwether index closed higher by 14.15 points or 0.17% to 8,049.35 on Tuesday.

The all-shares index also finished higher by 4.94 points or 0.10% to 4,766.93.

“Philippine markets managed to lightly finish in the green despite trading most of the afternoon in the red as it kept afloat the psychological 8,000 support mark,” said Luis A. Limlingan, business development head at Regina Capital Development Corp.

“This, despite still lackluster developments, with US stocks futures falling on Monday still due to the recent nuclear test of North Korea,” he added.

“Markets around the world are somewhat cautious due to North Korea but our own market is actually quite resilient even ending the day up,” said Miko S. Sayo, trader at Angping & Associates Securities, Inc.

North Korea claimed to have successfully tested a nuclear bomb, causing jitters in financial and stock markets across the region. Philippine stocks were among those that managed to close higher on Monday despite the alarming news.

Regina Capital’s Mr. Limlingan added that the local consumer price index came out slightly above expectation. He said Regina Capital expected inflation to have climbed to 3.1% year on year in August from 2.8% in July. This compares with the consensus of 3%.

“Sequential momentum has been around 0.3% (month on month) with the increase in local gasoline prices during the month and some reversal in the recent softness in food prices,” he said.

Among sectoral indices, mining and oil shares recorded the biggest increase at 91.16 points or 0.67% to 13,586.59. Industrials followed with a rise of 62.41 points or 0.56% to 11,174.14. Services went up 0.34% or 5.94 points to 1,735.56; property climbed 0.2% or 7.55 points to 3,781.27; and holding firms gained 0.13% or 10.57 points to 7,941.69. On the other hand, financials dropped 6.42 points or 0.32% to 1,982.61.

Value turnover was at P5.84 billion, down from P6.45 billion on Monday, with 2.21 billion shares changing hands.

Declining stocks outnumbered advancers at 103 to 87, while 55 issues finished unchanged.

Foreign funds sold more shares than they bought, resulting in a net selling of P123.61 million worth of stocks and reversing the other day’s net buying of P257.99 million.

In contrast, most Southeast Asian stock markets fell on Tuesday as simmering tensions on the Korean Peninsula continued to hurt sentiment,

South Korea said on Tuesday an agreement with the US to scrap a weight limit on its warheads would help it respond to North Korea’s nuclear and missile threat after Pyongyang’s nuclear test last Monday. — Victor V. Saulon with Reuters.