Stock market up but not enough to settle above 6,000 barrier

MANILA—The local stock index retested the 6,000 level in intra-day trade on Friday but failed to muster enough steam to rise past this barrier at closing.

The main-share Philippine Stock Exchange index added a modest 4.85 points or 0.08 percent to finish at 5,987.09, gaining momentum for the third consecutive session.

The index hit an intra-day high of 6,008.22, breaching the 6,000 level for the first time this year, but pared gains at close.

Manny Cruz, chief strategist at Asiasec Equities Inc., said the PSEi must break out of 6,000 mark at closing to confirm a bullish signal. He said this would likely happen in the coming week.

He noted that the local market was up on Friday despite the overnight decline in US stocks. The Dow Jones Industrial index shed 64.93 points on Thursday.

The catalyst in the last few days, Cruz said, had been the bleak US jobs report which in turn boosted expectations that the US Federal Reserve’s reduction and full withdrawal of monetary stimulus may take longer than expected. He said this was benefiting sentiment on emerging markets like the Philippines.

For the week, the PSEi added 144.21 points or 2.5 percent.

“We’re slowly moving better. This is a stock picker’s market. We’re separating the men from the boys,” said fund manager Gus Cosio, president of First Metro Asset Management Inc.

On Friday, turnover amounted to P5.48 billion. Market breadth was positive, with 78 advancers against 71 decliners.

Most gains eked out by the financial, holding firm and property counters made up for the dip by the industrial, services and mining/oil sub-indices.

Investors loaded up on shares of AGI (+3.33 percent), LTG (+3.1 percent) and Megaworld (+1.73 percent). BDO, Metrobank, Globe and MPI also gained in heavy volume.

But the day’s outperformer was Prime Media (+25.32 percent), which was likewise the day’s most actively traded stock.

On the other hand, the PSEi’s rise was tempered by the decline of shares of SMIC, AC, PLDT, URC and ICTSI.

Meanwhile, the PSE lifted the trading suspension on Bloomberry at 1:40 p.m. on Friday.

Its shares were down by 2.23 percent at closing price of P8.78 per share.