PSEi retests 6,400 level

MANILA, Philippines—The local stock barometer returned to positive territory on Monday, retesting the 6,400 level, as regional markets stood resilient to a weak factory gauge out of China.

The main-share Philippine Stock Exchange index (PSEi) gained 61.41 points or 0.97 percent to close at 6,400.67.

After some profit-taking on Monday, foreigners were back to a net buying position at the local market, resulting in a net inflow of P307 million for the day. Prior to last Friday’s net selling, foreign investors were net buyers in the local bourse for 18 consecutive days.

But despite the day’s uptick, stockbrokerage Regina Capital said: “We are still not out of the woods yet as a correction of the market is not discounted.”

Most counters were up, led by the services and holding firm indices, which gained more than 1 percent. Only the interest rate-sensitive property counter ended a tad lower ahead of the Bangko Sentral ng Pilipinas’ monetary-setting meeting this week.

BSP Governor Amando Tetangco Jr. last week indicated a shift to “hawkish” bias, which some believed could be a precedent to the tightening of local monetary settings as early as this Thursday’s Monetary Board meeting.—Doris C. Dumlao