Philippine stocks slightly higher amid bargain-hunting

MANILA, Philippines—The local stock market struggled to remain in positive territory on Thursday but bargain-hunting firmed up the main index despite the temptation to join the profit-taking seen in offshore markets.

The main-share Philippine Stock Exchange index added 1.51 points, or 0.04 percent, to finish at 3,877.63 as investors focused their trades on selective blue chips. Local stocks thus overcame a rough start but encountered some resistance near the 3,900 mark.

Trading was mixed across counters, with the mining/oil, property and financial sub-indices leading the index higher while the decline in the industrial, holding firms and services counters tempered the day’s gains.

Turnover amounted to P5.18 billion.

There were 75 advancers against 61 decliners while 38 stocks were unchanged.

Metrobank, SM Prime, Aboitiz Power, AGI, DMCI, Semirara, Metro Pacific Investments and URC aided the main index.

On the other hand, the PSEi’s gains were curbed by the decline in the share prices of PLDT, ICTSI, San Miguel Corp., SM Investments, Ayala land, Globe Telecom and Ayala Corp.  Lepanto A (open only to local investors) and B (open to both local and foreign investors) also fell in heavy trade.

Overnight, Wall Street ended a three-day rally as financial markets rekindled concerns over the fiscal crisis in Europe.  This was after German Chancellor Angela Merkel suggested that there might have to be a renegotiation of the debt restructuring package for Greece.  This highlighted further uncertainties on the magnitude of losses Greece’s creditor-banks would take.