The local stock barometer rose for the fifth straight session on Tuesday on selective buying of large companies as the second-quarter corporate earnings reporting season started unfolding.
The Philippine Stock Exchange index (PSEi) gained 25.03 points, or 0.33 percent, to close at 7,598.29. Elsewhere in the region, equity markets rebounded from early losses despite an overnight decline in US stocks.
The index was led higher by the financial, industrial, holding firm and property counters while the services and mining/oil counters slipped. Value turnover for the day amounted to P8.2 billion.
Despite the PSEi’s gain, market breadth was negative, with 69 advancers, 106 decliners and 46 unchanged stocks.
Among those that perked up the PSEi were Meralco and Megaworld, which both gained more than 2 percent. Metrobank, MPI, SM prime, SMIC, AGI and ICTSI also contributed to the day’s gains.
Outside of the PSEi, Cebu Air was a notable gainer, rising by 2.5 percent in heavy volume.
On the other hand, PLDT and Ayala Corp. lost more than 1 percent while Ayala Land Inc., JG Summit and BPI also closed lower.
Local stockbrokerage DA Market Securities said the best trading strategy for the short term would be to trade the range. Longer-term, it said investors could accumulate or buy on dips and do a selective stock picking. “Valuations have become more attractive for medium- to long-term positions,” it said.
By yearend, DA Market sees the PSEi rising to 8,000-8,200 and the market willing to buy stocks at 20 times projected earnings. It sees average earnings per share growing by 12-15 percent this year, more optimistic than the latest market consensus of 8.6 percent.–Doris Dumlao-Abadilla