Stocks rise on China rate cut
The local stock barometer snapped out of a two-day pullback Monday on selective buying of large-cap stocks.
The Philippine Stock Exchange index (PSEi) gained 43.35 points or 0.56 percent to close at 7,773.92. Across the region, Asian stocks were mostly higher following China’s interest rate cut over the weekend.
Most of the sub-indices gained, led by the mining/oil and property counters. Only the services counter was in the red.
Value turnover for the day amounted to P8.25 billion. There were 98 advancers that beat 67 decliners while 56 stocks were unchanged.
Ayala Land Inc. and Semirara led the day’s gainers, both rising more than 2 percent while SM Investments Corp., Metrobank, Megaworld, Ayala Corp. and First Gen all advanced more than 1 percent. Metro Pacific Investments Corp. and Energy Development Corp. also contributed gains.
On the other hand, PLDT—the day’s most actively traded stock—fell by 1.96 percent after breaking a key support level ahead of the release of 2014 earnings. Alliance Global Group Inc. was also down 2.1 percent. Jollibee also fell 1.27 percent. BDO and Universal Robina Corp. also ended lower.
In a research note, DA Market Securities said that amid uncharted territory, next major resistance was pegged at the low end of the 2015 target range of 8,000-8,500 while initial major support is at 7,485. It said technical indicators were pointing to overbought levels.
“Short-term investors may take profit as stocks reach targets or overbought territory, ahead of a post-earnings period that may be characterized by a lack of leads. Individual stock picks can present opportunities amid rotational nature of the market,” DA Market said. Doris C. Dumlao
