PSEi recovers slightly

The local stock barometer rebounded on Tuesday but remained within bear territory due to weak economic prospects for China.

The Philippine Stock Exchange index (PSEi) added 42.29 points or 0.67 percent to close at 6,330.55, paring intra-day gains.

Despite the slight advance on the back of selective buying, the 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 have 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 [Premier] Li Keqiang in 2016,” Oyson said.

The PSEi was led higher by the cyclical financial and property counters, which both gained more than 1 percent, while the industrial and services sectors also increased.

The holding firm and mining/oil sectors slipped.