By Denise A. Valdez, Reporter
THE MAIN INDEX closed with gains on Tuesday amid a volatile trading session that saw it falling by as much as 76 points.
The bellwether Philippine Stock Exchange index (PSEi) added 69.84 points or 1.07% to close at 6,583.84, while the broader all shares index picked up 34.69 points or 0.9% to end at 3,862.09.
The PSEi opened at 6,527.36 and hit a low of 6,438.97 before reaching its peak of 6,583.84 when it closed.
“The market closed up gaining 69 points to settle at 6,583 after dipping as low as 76 points intraday. We were expecting this volatility as bullish and bearish investors battled the past few days,” PNB Securities, Inc. President Manuel Antonio G. Lisbona said in a text message.
“The bulls believe that the worst of the pandemic is behind us while the bears think that this rally doesn’t make sense given the impact of the pandemic on the real economy,” he added.
The market has been on an uptrend since mid-May when news of a potential coronavirus disease 2019 (COVID-19) vaccine came out. It sustained its climb and breached the 6,000 level as the days went on as investors were optimistic over the relaxation of quarantine measures in Metro Manila.
However, since there is still no cure to the virus and the number of COVID-19 cases continues to rise, some investors are doubting how sustainable the climb of the market will be. “For now the bulls seem to be winning as optimistic momentum prevailed for today (Tuesday),” Mr. Lisbona said.
For AAA Southeast Equities, Inc. Research Head Christopher John Mangun, it is notable that the PSEi’s drop at the open is steeper, signaling that more investors are beginning to secure profits.
“There are growing concerns that the rally is over extended and that we may see a strong pull back soon,” he said in an e-mail.
Mr. Mangun noted investors are more active now with value turnover at P8.54 billion and 980.8 million issues switching hands.
All sectoral indices closed the session in green territory. Services rose 38.45 points or 2.73% to 1,442.52; industrials climbed 217.89 points or 2.72% to 8,220.96; mining and oil increased 96.44 points or 1.79% to 5,470.55; financials gained 12.22 points or 0.91% to 1,352.68; holding firms accelerated 25.92 points or 0.38% to 6,716.32; and property improved 9.80 points or 0.29% to 3,314.61.
Advancers outnumbered decliners, 135 against 73, while 43 names ended unchanged.
Foreign investors became net buyers with net inflows of P62.32 million, a turnaround from net selling of P147.43 million a day ago.
“Foreign investors are still mainly undecided as fund flows go back and forth. We may see the main index retreat toward the end of the week,” Mr. Mangun said.
“Chart-wise, the momentum is starting to slow, especially in contrast to last week’s price action. If the market should correct, we are looking at immediate support at 6,200 with a line in the sand at 6,000,” Mr. Lisbona said.