PH stock index gains but still below 6,000

PSE index as of January 15, 2014, 3:46 PM. Screengrab from https://www.pse.com.ph

MANILA, Philippines — The local stock barometer returned to positive territory on Wednesday, but still shy of the 6,000-barrier, as investors took their cue from an overnight equities rebound in Wall Street.

The main-share Philippine Stock Exchange index gained 22.56 points or 0.38 percent to close at 5,958.12. Regional markets were also mostly higher after US stocks recovered from the previous day’s big selldown.

The day’s index advance was supported by modest gains eked out by the financial, industrial, holding firm and property counters, which made up for the slack in the services and mining/oil counters.

Value turnover amounted to about P5.8 billion. There were 84 advancers that outnumbered 63 decliners while 52 stocks were unchanged.

Investors loaded up on shares of LTG (+4.57 percent) and URC (+2.18 percent). AC and AP also both gained by over 1 percent. BDO, AGI, ALI, ICTSI, Globe, DMCI and SM Prime also contributed to the PSEi’s gains.

Outside of the PSEi, Emperador (+3.3 percent) gained in heavy volume.

On the other hand, PLDT, Metrobank and MPI traded lower for the day.

With the PSEi inching closer to resistance at 6,000, local stock brokerage DA Market Securities said breaking the barrier would be “pivotal” in moving away from a larger downtrend. Next resistance levels are then seen at 6,265 and 6,482.

“Unless this last resistance of 6,482 is broken on the upside, the market remains to be in a downward trend,” the stock brokerage said on Wednesday.

“The PSEi recently broke out of a downtrend that began in November last year. The index could move sideways and build a base,” the brokerage house said.

For the meantime, DA Market Securities said the levels at 6,000 and below would be a buying opportunity.