Bargain-hunting lifts PSEi

The local stock barometer climbed back to the 7,600 level on Wednesday ahead of the Bangko Sentral ng Pilipinas’ monetary setting.

The Philippine Stock Exchange index (PSEi) gained 91.77 points or 1.21 percent to close at 7,643.33, likewise tracking mostly firmer stock markets elsewhere in the region.

All counters were up, led by the industrial, services and property which all gained by over 1 percent. Value turnover amounted to P6.19 billion. There were 97 advancers that edged out 71 decliners while 37 stocks were unchanged.

The BSP’s policy-making Monetary Board is set to hold today its fourth monetary policy-setting meeting for 2015.

SM Prime led the day’s upswing, rallying by 4 percent. PLDT, Metrobank, Metro Pacific Investments and Alliance Global Group Inc. all advanced by more than 2 percent while URC and Megaworld rose by over 1 percent.

Ayala Land Inc., Ayala Corp. and Robinsons Land Corp. also contributed to the day’s gains.

On the other hand, SM Investments Corp., BDO and Meralco ended lower.

Local stockbrokerage DA Market Securities said in a research note that the PSEi downtrend that began in April was still intact. Although relative strength index (RSI) was rebounding from oversold and moving average was pointing to a bullish crossover, DA Market said the current move was only a rebound from oversold levels.

“Formidable resistance to support a bullish move will be the break on the upside from pivotal level 7,760, the upper end of the downtrend channel,” DA Market said.

Only if such level was broken convincingly would it mark an exit from the downtrend and lead to a possible sideways move/consolidation or even a reversal, the local stockbrokerage said. Doris Dumlao-Abadilla