PSEi back to 7,600 level
THE LOCAL stock barometer firmed up back to the 7,600 level in thin trading on Monday, sharing regional markets’ optimism on the resolution of the Greek debt crisis.
Reversing early losses, the Philippine Stock Exchange index gained 7.97 points or 0.11 percent to close at 7,609.14. Across the region, stock markets were mostly higher as Greece and the European Commission worked on last-ditch measures aimed to avert a debt default by Greece.
This developed as the Philippine Stock Exchange and Nasdaq announced on Monday that PSE had a successful migration to the PSEtrade XTS trading system powered by Nasdaq’s X-stream trading technology.
The day’s modest gain was supported by the industrial, services and property counters while the financial, holding firm and mining/oil counters ended in negative territory.
Value turnover was thin at P5.44 billion. There were 97 advancers that edged out 67 decliners while 40 stocks were unchanged.
Meralco led the index higher, gaining 1.75 percent while EDC also rose by 1.59 percent. URC and Megaworld also rose by over 1 percent.
BDO, Globe, Metrobank, DMCI, JG Summit, MPI and ICTSI also contributed to the PSEi’s gains.
On the other hand, shares of ALI, SMIC, Jollibee, PLDT, BPI, AC and GTCAP declined. One notable decliner outside of the PSEi was gaming stock PLC, which tumbled by 3.85 percent.
Luis Gerardo Limlingan, managing director at local stock brokerage Regina Capital, said investors should expect a choppy week as the index attempts to reverse its downtrend, citing improving technical indicators.
“Breaking 7,690 will be our bullish condition this week,” Limlingan said. “On the other hand, selling pressure remains strong that sharp pullbacks down to 260-day moving average are possible based on current volatility readings and bearish intraday patterns.”
“Again, we reiterate selling on rallies until our bullish condition is met. For short term trades done last week, current levels are good for taking profits as most issues – especially index stocks – that rallied are trading near their respective resistance levels,” he said.
Meanwhile, PSE president Hans Sicat said the shift to this trading engine was a milestone, noting that the exchange was fortifying technology platforms in line with our vision to be a premiere exchange with world-class standards. “We know that with Nasdaq’s technology expertise and experience, the PSE is assured of long-term support,” Sicat said in a joint statement with Nasdaq.
Nasdaq president Adena Freidman said: “We are thrilled to see the successful go-live of PSE’s new trading system. The Philippines is an important, growing market for Nasdaq, one that demands robust, scalable technology to meet international standards and attract both regional and overseas capital. We are honored to support PSE’s goals and future development.”
The XTS trading system is equipped to handle big trading volumes and is capable of supporting the requirements of the PSE moving forward, including products and services that it plans to launch. It also has risk management features including same-day recovery in case the disaster recovery site is utilized.
The PSE is only one of two exchanges globally – among bourses that are members of the World Federation of Exchanges – to post six consecutive years of gains, from 2009 to 2014.
