PSEi firms up on selective buying

THE LOCAL stock barometer firmed up on Wednesday on selective buying after a five-day decline.

The main-share Philippine Stock Exchange index recouped 11.28 points or 0.15 percent to close at 7,344.73, reversing losses in early trade as the second quarter corporate earnings season ended.

The day’s gains were led by the financial, industrial, services and mining/oil counters while the holding firms and property counters ended lower.

Value turnover stood at P5.99 billion. Despite the PSEi’s rise, market breadth was negative as there were 91 decliners that edged out 77 advancers while 51 stocks were unchanged.

The day’s gains were led by Bloomberry and Semirara while PLDT, Megaworld, URC, Globe, MPI and EDC gained by over 1 percent.

JG Summit and Meralco also contributed to the day’s gains.

On the other hand, AGI slumped by 6.25 percent. GTCAP, BDO, ALI, SMIC and DMCI also faltered.

In its weekly research note, First Metro Securities said investors should expect the PSEi to remain range-bound this week, as it continues to test its next supports at 7,275 to 7,300.

“MACD (moving average convergence-divergence) readings also remain light and confirm its consolidation, while RSI (relative strength index) readings have yet to trade on oversold levels,” First Metro Sec said.

“Those who sold on the pullback may continue trading the range if its support at 7,275-7,300 continues to hold,” the brokerage added.