Shares end higher on last-minute buying

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SHARES ended in the green territory on Monday on last-minute buying despite more foreign outflows.

The 30-member Philippine Stock Exchange index (PSEi) gained 99.48 points or 1.28% to close at 7,872.60, while the broader all shares index climbed 46.5 points or 1.01% to end at 4,645.33.

PNB Securities, Inc. President Manuel Antonio G. Lisbona cited last-minute which pushed the main index up.

“There was also some optimism on the companies included in the water utility crisis as investors positioned themselves in anticipation of a favorable government announcement scheduled in early January,” he said in a text message.

He specifically mentioned Manila Water Co., Inc., which rose 15.19% on Monday. Metro Pacific Investments Corp. also gained 4.91% and DMCI Holdings, Inc. increased 0.31%

“If the market continues this kind of behavior, we could see the index poised to breach 8,000 by early next year,” he noted.

“The PSEi ended higher today despite foreign outflows as local buyers scoop up battered shares,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail on Monday.

Net outflows for Monday’s session totaled P1.22 billion, down from previous session’s net sales worth P1.27 billion.

“This looks like end-of-year window dressing and positioning for a 2020 rally. The market may end the week higher if local investors continue to outpace foreign selling,” he added

He also noted that the index reflected positive developments in the US-China trade war.

Sentiment improved over news that Chinese President Xi Jinping discussed through phone over the weekend with US President Donald Trump “phase one” deal, which is seen to be signed early January.

All sub-sectors gained except services, which fell 1.65 points or 0.10% to close 1,531.69.

Meanwhile, mining and oil rose 268.66 points or 3.54% to close at 7,855.40; industrials gained 286.73 points or 3.06% to 9,654.32; property climbed 68.37 points or 1.65% to 4,207.91; holding firms increased 81.42 points or 1.07% to close 7,681.07; and financials added 6.18 points or 0.33% to 1,849.34.

Some 478.95 million issues valued at P8.30 billion switched hands on Monday, down from previous session’s P13.15 billion.

Stocks that gained outnumbered those that fell, 128 to 58, while 54 issues were unchanged. — Vincent Mariel P. Galang