MANILA, Philippines—(UPDATE) Local stocks were marginally higher on Monday, bringing the index back to 4,300 level, as investors picked up selected blue chips.
The main-share Philippine Stock Exchange index added 8.7 points, or 0.2 percent, to 4,300.81 despite a cautious global environment for equities.
The index was supported by gains eked out by the services, financial and mining/oil counters. Lepanto, URC, AGI, ICTSI, Ayala Land and Metrobank led the index higher while non-index stocks Atlas and Leisure & Resorts also moved higher in heavy trade.
On the other hand, the industrial, holding firms and property counters weighed down the market. San Miguel Corp., Megaworld, First Gen, PNB, EDC, Philex, DMCI, JG Summit, Cebu Air, Manila Mining and AEV also traded in the red.
Value turnover was thin at P3.8 billion as intra-trading was interrupted by technical problems. Foreign investors were on a net buying position worth a modest P109 million for the day.
There were 55 advancers as against 76 decliners, while 44 stocks were unchanged.
Justino Calaycay Jr., a dealer at Accord Capital Equities, said in his weekly outlook that the market was building up positive momentum, which was creating trading opportunities this week. “However, the presence of slightly negatively biased indicators keeps us on our toes on the prospects of intermittent pull-backs,” Calaycay said.
Unsatisfactory developments in overseas conditions may serve as the stimulus to move stocks lower, providing healthy corrections, he said.
“Investors are well-advised to be cognizant of crucial pull-back lines for a reaction low from ensuing rallies as potential entry points. At this instance, these important pull-back lines lie at the 4,270-4,280 and 4,200 and the major support mark at 4,170,” he said.