PSEi rallies above 6,800
The benchmark equity index rallied for a third-straight session to close above 6,800 as more investors jumped back into the market to take advantage of recent declines.
The Philippine Stock Exchange index (PSEi) ended Monday’s session up 173.65 points, or 2.59 percent, at 6,875.60. The broader all-shares index also rose 1.96 percent to P4,229.61.
“We are seeing bargain-hunters, long-term players coming back given that foreign selling has tapered off,” Astro del Castillo, managing director at First Grade Finance Inc., said in a phone interview. He said local investors were encouraged by the PSEi’s recovery late last week. The benchmark index has clawed back gains of about 4.8 percent over the last three sessions after dropping more than 11 percent on worries over the scale of a potential reduction in monetary stimulus by the US Federal Reserve.
Castillo, nonetheless, said consolidation remained a key theme. “I think portfolio realignment will continue especially with the changing investment landscape,” he added, referring to actions the US Fed might take in the coming weeks.
Gains were broad-based Monday with all sub-indices ending in the green, led by services, which jumped 4.36 percent. This was followed by the property subsector, which gained 3.02 percent.
There were 123 advancers against 52 decliners while 29 companies were unchanged. A total of 1.14 billion shares valued at P14.22 billion changed hands.
Even index heavyweight PLDT rose faster than the PSEi Monday despite a report that lawyer Dean Jose Roy III, in a filing, asked the Supreme Court to order the Securities and Exchange Commission to once again look into the foreign ownership structure of PLDT for alleged violations. (See story on page B3.) PLDT shares jumped 5.08 percent to P3,100 a share.
George Ty-led Metropolitan Bank and Trust Co., the most actively traded stock, gained 2.36 percent. This was followed by SM Prime Holdings (+6.62 percent), Alliance Global Group Inc. (+4.15 percent), Ayala Land Inc. (+1.9 percent) and GT Capital Holdings Inc. (+3.77 percent). Miguel R. Camus
