Stocks rise slightly on bargain-hunting

The local stock barometer inched up on selective buying Friday but investors remained jittery over the upcoming Federal Open Market Committee (FOMC) meeting.

The main-share Philippine Stock Exchange index (PSEi) added 4.6 points or 0.08 percent to close at 5,767.13. During the week, the main index lost 247.81 points or 4.1 percent, slipping to bear territory and wiping out all gains for the year.

The day’s decline was spurred by the financial, industrial, mining/oil and property counters, which negated the modest gains posted by the holding firm and services counters.

Value turnover amounted to P9.32 billion. There were 69 advancers, which were edged out by 81 decliners, while 49 stocks were unchanged.

In a research note, BPI economists Emilio Neri Jr. and Nicholas Antonio Mapa said financial markets still seemed to be overly focused on the FOMC in the coming week, which has largely dictated market sentiment in the latter half of the year.

“We think recent market behavior has been driven by profit-taking motives as investors move out of 2013 outperformers (such as South East Asia) and back into North Asia, given the latter’s stronger trade linkages with the US,” the research said. “We continue to believe that after the panic has abated, funds are likely to be kept where fundamentals are strongest.”

The recent decline in Philippine financial markets aligns the country with most of the region and thus the Philippines may be poised to benefit from flows when they return, the BPI research said. However, BPI said a return to 2013 highs (7,400 for the PSEi) may be unlikely in the short-term as market players train their sights on the Fed tapering decision. Doris C. Dumlao