PSEi regains over upbeat 2015, re-tests 7,400-level and closes at 7,399
MANILA, Philippines – The local stock barometer regained ground on Tuesday as investors resumed positioning for upbeat 2015 prospects.
The main-share Philippine Stock Exchange index gained 40.64 points or 0.55 percent to close at 7,399. It re-tested the 7,400 mark in intra-day trade, reaching as high as 7,428.92 for the day before closing lower.
Elsewhere in the region, stock markets were mostly higher as China’s trade data exceeded market expectations.
At the local market, all counters firmed up except for the property counter, which was a tad lower.
There were 102 advancers that edged out 78 decliners while 44 stocks were unchanged. Value turnover for the day amounted to P8.93 billion.
Joseph Roxas, president of Eagle Equities Inc., said the first quarter was usually an upbeat period for the market. In this case, he said investors were looking more at growth prospects rather than being intimidated by high valuations.
The PSEI’s rise was led by LTG, which went up by 3.24 percent while BDO also rose by 2.82 percent. URC and EDC went up by over 1 percent.
ALI, Meralco, PLDT, Metrobank, BPI, SMIC, MPI, AEV and JGS also contributed to the day’s gains.
In a research note, local stock brokerage DA Market Securities said that resistance at nearby all-time high level could lead to a retest of 7,215 support for a technical breather. Currently, it said technical indicators continued to show a bullish crossover with room for upside.
“A convincing break above all-time high would present a bullish scenario and would see new highs for the index while a resistance would see a continued consolidation with reattempt at supports (initially at 7,215),” DA Market said.
On Jan. 9, the PSEi closed at an all-time high of 7,402.72 and likewise hit an intra-day peak of 4,446.66.
“We will continue to monitor oil prices, market placements and FOOs (follow-on offerings) priced at discounts or IPOs (initial public offerings) which can have a more significant role in stock prices and liquidity,” the brokerage said.
