The local stock barometer firmed up for the fifth straight trading session on Monday, shored up by a rebound in telecom stocks.
The main-share Philippine Stock Exchange index gained 28.14 points or 0.39 percent to close at 7,276.34 after a choppy trading day.
The day’s gains were led by the services counter, which rose by 1.93 percent. Only the holding firm sub-index slipped for the day.
“Philippine shares finished higher despite mixed (US) economic data from Friday night, which kept markets slightly in positive territory. U.S. non-farm payrolls came in below expectations last month; however, a jump in wages pointed to sustained labor market momentum,” said Regina Capital development managing director Luis Gerardo Limlingan.
Out of Asia, Limlingan noted that China’s foreign-exchange reserves fell to their lowest level in nearly six years in December. The People’s Bank of China announced on Saturday that the nation’s foreign-exchange reserves fell by $41.08 billion month-on-month to $3.011 trillion, the lowest level since March 2011.
At the local market, value turnover for the day amounted to P5.24 billion. For the seventh straight session, foreign investors were net buyers to the tune of P202 million.
Market breadth was positive, with 104 advancers edging out 88 decliners while 48 stocks were unchanged.
A rebound by Globe Telecom and PLDT led the PSEi higher, respectively surging by 6.29 percent and 4.21 percent.
Veteran stock broker Joseph Roxas said investors which were tracking the PSEi may have loaded up on telecom stocks. Otherwise, he said there wasn’t any new catalyst for the much-battered counter to edge higher.
“We have to see whether there’s an improvement, even if it’s not a reversal (of fortunes). We’ll be happy even just for the sector to stabilize,” Roxas said.
Investors also gobbled up shares of SM Prime, which rose by 2 percent and was the day’s most actively traded stock.
Metrobank rose by 1.63 percent while Semirara, BDO Unibank, Jollibee, Aboitiz Equity, JG Summit and ICTSI also contributed to the day’s gains.
Outside of the PSEi, one notable gainer was dormant mining firm Pacifica Inc., which surged by 31.58 percent – outperforming all stocks in the market – on backdoor-listing expectations as the people behind Kuya J restaurant chain took over board and management control. (See related story).
On the other hand, Ayala Land and Security Bank both fell by over 1 percent while Metro Pacific, URC, Ayala Corp., and DMCI Holdings slipped.
Overall, Regina Capital sees the PSEi rally soon pausing as the resistance level at 7,300 draws near.
Elsewhere in the region, sentiment was mostly cautious ahead of a press briefing by President-elect Donald Trump. The market is awaiting his pronouncements on global trade and relations with China.