The Philippine Stock Exchange on Monday dropped into bear territory. On Tuesday, it closed at 6,330. AP file Photo/Aaron Favila
THE LOCAL stock barometer rebounded on Tuesday but remained within bear territory due to weak economic prospects for China.
The Philippine Stock Exchange index added 42.29 points or 0.67 percent to close at 6,330.55, paring intra-day gains.
Despite the slight gain arising from selective buying, PSEi is still 1,797 points or 22 percent off the PSEi’s peak closing of 8,127.48 on April 10, 2015.
“I would not rush back in to the markets as market multiples gace serious risk of compression as equity risk premium further increases,” said BPI Securities president Michaelangelo Oyson.
“If (US Federal Reserve chair Janet Yellen) was the person to watch in 2015, it will be China’s (Prime Minister) Li Keqiang in 2016,” Oyson said.
The PSEi was led higher by the cyclical financial and property counters which both gained over 1 percent while the industrial and services sectors also increased.
The holding firm and mining/oil sectors slipped.
Value turnover for the day amounted to P4.7 billion. There were 96 advancers that edged out 77 decliners while 45 stocks were unchanged.
SM Prime led the PSEi higher, gaining 3.23 percent while BPI advanced by 2.28 percent. Metrobank, Megaworld, ICTSI and AGI all rose by over 1 percent.
SMIC, PLDT, URC and AEV also contributed to the day’s gains.
Outside of the PSEi, investors also picked up shares of RRHI (+3.01 percent) and Security Bank (+0.75 percent).
On the other hand, JG Summit fell by 2.06 percent while AC, Globe and RLC also slipped. Outside of the PSEi, DNL fell by 3.69 percent.