Philippine shares posted some gains on Friday as investors turned a bit optimistic after Wall Street’s rally, but trading remained sluggish amid lingering concerns over the pandemic, analysts said.
The bellwether Philippine Stock Exchange index (PSEi) rose 22.65 points or 0.32% on Friday to close at 7,055.19, while the broader all shares index went up by 17.7 points or 0.46% to at 3,790.2.
“A broad rally on Wall Street pushed stocks pushed sentiment across the region in the green including the Philippines, as the PSEi market continued [to] recoup some of its losses after several days of volatile trading,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Wall Street closed sharply higher on Thursday, recovering ground lost over recent sessions as market participants snapped up bargains while digesting the implications of a shifting pandemic, Reuters reported.
MSCI’s all-country world index closed up 0.75% as Wall Street rallied. The Dow Jones Industrial Average rose 1.82, the S&P 500 added 1.42% and the Nasdaq Composite advanced 0.83%.
“Trading was lethargic, however, with net value turnover posting P6.16 billion, below the year-to-date average of P7.47 billion. This shows that many investors have stayed out of the market due to the lingering COVID-19 uncertainties caused by the Omicron variant,” Philstocks Financial, Inc. Senior Research and Engagement Supervisor Japhet Louis O. Tantiangco said in a Viber message.
The World Health Organization on Friday warned Asia-Pacific countries to boost healthcare capacity and fully vaccinate their people to prepare for a surge in the coronavirus disease (COVID-19) cases as the Omicron variant spreads globally despite travel curbs, Reuters reported.
The National Task Force against COVID-19 enforced an entry ban on international travelers from South Africa, Botswana, Namibia, Zimbabwe, Lesotho, Eswatini, Mozambique, Austria, the Czech Republic, Hungary, the Netherlands, Switzerland,
Belgium, and Italy from Nov. 28 until Dec. 15.
Meanwhile, sectoral indices in the local bourse were mixed. Property rose 72.77 points or 2.31% to close 3,216.71; financials climbed 20.51 points or 1.33% to 1,558.49; and services grew 8.42 points or 0.43% to 1,938.52.
On the other hand, mining and oil fell 106.80 points or 1.12% to 9,362.03; holding firms tumbled 45.80 points of 0.66% to 6,796.39; and industrials slid 54.87 points or 0.53% to 10,307.05.
Value turnover decreased to P6.97 billion with 1.30 million issues switching hands on the last trading day of the week, down from the P9.04 billion with 844.79 million shares traded on Thursday.
Advancers topped decliners, 131 versus 65, while 38 names closed unchanged.
Net foreign selling dropped to P181.60 million, lower than the P1.02 billion logged in net outflows on Thursday.
Darren Blaine T. Pangan, trader at Timson Securities, Inc., expects the PSEi’s support to remain at the 6,800 level, while seeing 7,454.50 as the nearest resistance level. — M. C. Lucenio