Stocks track regional upswing

The local stock barometer swung back to positive territory on Friday, tracking a regional upswing that reflected optimism in corporate earnings.

The main-share Philippine Stock Exchange index (PSEi) added 11.94 points or 0.2 percent to close at 6,113.66.

For the week, the index was flat from the previous Friday’s closing of 6,011.14.

Only the services counter ended lower on Friday, weighed down by index heavyweight PLDT (-0.3 percent).

Among the large-cap stocks, the day’s outperformers were URC (+1.87 percent) and Megaworld (+1.32 percent) while ALI, Metrobank, Aysla Corp., SMIC, SMPH, RLC and EDC also contributed to the day’s gains.

Cosco (+2.48 percent) also gained in heavy trade, seen as a catch-up to the local consumer play.

Meanwhile, MPI and Globe curbed the PSEi’s rise, both declining by over 2 percent.

DA Market Securities said that while the recent rally brought the index above 6,000, support at this level was required, possibly from strong earnings season, to keep a positive technical outlook, as well as sentiment. The next levels at 6,200 and 6,400 are seen as critical points.

With the downtrend intact, DA Market said investors must watch how 6,000 would hold. “Breaking this support will open the possibility of a retest of recent lows—5,678 and 5,562,” it said.

The brokerage said the preferred trading strategy would be to “accumulate slowly or wait for better bottoming signals. Doris C. Dumlao