Stocks remain above 8,000 points ahead of earnings announcements
SHARE prices kept the benchmark index above the 8,000 level at the close of trading Friday as investors took positions ahead of earnings season expected to kick off next week.
The Philippine Stock Exchange index rose 0.32% or 25.69 points to close at 8,071.47 on Friday, marking its third day above the 8,000-mark. The broader all-shares index gained 0.19% or 9.02 points to 4790.60.
“Most likely it’s the earnings season, and investors are positioning themselves. It’s very timely for investors to position themselves now,” Sales and Business Development Associate at F. Yap Securities, Inc. Cathrina Anne C. Cerdenia said in an interview.
PNB Securities President Manuel Antonio G. Lisbona said Friday’s market performance signaled that investors have started to re-enter the market.
“Today’s performance tells me that investors are starting to come off the sidelines and are re-entering the market, though cautiously… the market is now within striking distance of the all-time high of 8,134 which the market tried to surpass a little over a year ago,” Mr. Lisbona said in a text message.
A total of 1.11 billion shares changed hands worth P6.42 billion, which Mr. Lisbona said was thin.
“What is key now will be that the market holds above 8,000 and if the bulls do attack the all-time high, that the level is sustained. Otherwise, a bearish triple top will be formed,” Mr. Lisbona said, referring to a formation on the graph recognized as a negative signal by technical analysts.
F. Yap Securities’ Ms. Cerdenia also noted that the market still needs a confidence boost to breach 8,100 soon, and will likely come from signs that the government is following through on its promise to ramp up infrastructure spending.
Financials led the gainers, rising 0.68% or 13.31 points to 1,974.53, followed by services which gained 0.64% or 10.91 points to 1707.08. The property sector rose 0.22% or 8.64 points to 3,846.07, while holding firms climbed 0.2% or 15.98 points to 8,027.76.
The mining and oil sub-index lost 0.87% or 113.36 points to 12,936.21, while the industrials closed down 0.3% or 33.19 points at 11,124.58.
Foreign investors were net buyers of P632 million worth of stocks on the week. Advancers outnumbered decliners, 119 to 88, while 42 were unchanged. — Arra B. Francia
