PHL shares inch up as investors pick up bargains

PHILIPPINE shares inched up on Monday amid sideways trading on bargain hunting after days of decline.

The Philippine Stock Exchange index (PSEi) went up by 2.10 points or 0.02% to end at 7,282.67, while the all shares index inched up by 0.84 point or 0.02% to 3,878.95.

Diversified Securities Inc. Equity Trader Ancieto K. Pangan said in a text message that the PSEi rose due to bargain hunting after the market was in the red for three days.

Luis A. Limlingan, Regina Capital Development Corp. head of sales, said in a Viber message that local shares “traded quietly, tracking the performance of regional market.”

Value turnover stood at P8.47 billion with 1.06 billion shares changing hands, down from Friday’s P22.07 billion with 2.11 billion issues.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.1%, Reuters reported. Futures steadied after selling on Friday and EuroSTOXX 50 futures were up 0.2% and S&P 500 futures up 0.3%.

Sectoral indices were mixed. Financials went up 10.91 points or 0.69% to end at 1,589.16 and mining and oil increased by 45.54 points or 0.48% to 9,353.76.

Meanwhile, industrials lost 31.82 points or 0.29% to close at 10,675.18; services declined by 3.46 points or 0.17% to 1,976.99; property dropped 4.92 points or 0.14% to 3,329.44; and holding firms went down by 6.20 points or 0.08% to end at 7,005.78.

Net foreign selling was at P461.9 million on Monday, down from the P1.82 billion recorded on Friday.

“For the time being, we see this as a temporary pause of the reopening rally, one that needs to be rewound for the recovery trend to be reactivated,” COL Financial Group, Inc. Chief Technical Analyst Juanis G. Barredo said.

“We do hope that strong sales numbers may stem this Thanksgiving retail weekend (for Black Friday and Cyber Monday), to help prop the US market up… and hopefully other markets as well. But we may have to deal with some profit taking turbulence after these special discount days,” Mr. Barredo added.

“Historically, stocks have a good track record of bucking gains in Thanksgiving week. However, the resurgence in COVID-19 (coronavirus disease 2019) cases globally may either dent or cap gains on equities this week,” Regina Capital’s Mr. Limlingan added.

“On the other hand, investors are also expected to direct their attention to President Joseph R. Biden’s pick for the next Federal Reserve Chair in the coming days,” he said.

Austria began its fourth lockdown on Monday, with neighboring Germany warning it may follow suit, shutting Christmas markets, bars, cafés and theaters, Reuters reported.

Trade is likely to be thinned this week by Thanksgiving in the United States, but the virus’ resurgence has traders once again monitoring coronavirus disease 2019 (COVID-19) cases and governments’ responses, it added. — MCL with Reuters