Stocks extend gains

Philippine stocks Monday firmed up for the second straight session.

The main-share Philippine Stock Exchange index gained 12.38 points, or 0.17 percent, to close at 7,229.72.

Elsewhere in the region, trading was lackluster as Japan entered an economic recession.

All counters were up at the local market, but value turnover was relatively thin at P6.16 billion. Despite the PSEi’s rise, market breadth was negative with 96 decliners and 72 advancers, while 50 stocks were unchanged.

The Lopez group’s FGEN (+3.28 percent) and EDC (+1.23 percent) led the PSEi higher. EDC reported plans to build more wind power facilities to provide an additional capacity of 550 megawatts over the next few years.

After Monday’s close, trading may go sideways to upwards, based on the bullish

signals from moving average convergence-divergence (MACD) and DMI (directional movement index), said Luis Limlingan of Regina Capital Development Corp.

The key levels to watch out for, Limlingan said, would be 7,168 and 7,250. He noted that a breach on either levels would dictate the index’s trend phase. His recommended strategy is to accumulate for as long as 7,200 holds and move toward a strong buying position once 7,250 is breached.

The day’s most actively traded stock is newly listed specialty retailer SSI, which went up by 4.8 percent.

The PSEi’s gains were tempered by the decline of PLDT, AGI, Metrobank, Megaworld and URC. Doris C. Dumlao