PSEi a tad higher

The local stock barometer overcame a rough start to eke out a small gain on Tuesday on selective buying of large-cap stocks, mostly by local investors.

The Philippine Stock Exchange index added 1.49 points or 0.02 percent to close at 7,282.68. The local market was shored up by modest gains from the industrial, holding firm, mining/oil and property counters.

On the other hand, the financial and services counters ended lower.

Value turnover for the day amounted to P5.73 billion. Local investors supported the market, picking up shares unloaded by foreign investors. Net foreign selling for the day amounted to P558 million.

Despite the PSEi’s slight gain, market breadth was negative. There were 111 decliners that edged out 85 advancers while 48 stocks were unchanged.

Investors picked up shares of ALI, URC, Semirara, Jollibee, AGI, JG Summit, Ayala Corp. and EDC.

However, investors loaded up on shares on some non-PSEi stocks more aggressively. Arthaland surged by 20.59 percent after disclosing the incorporation of a new subsidiary that will serve as its vehicle for a new project. Cemex rebounded by 2.72 percent after falling sharply in recent days since announcing sluggish fourth quarter results.
CIC gained by 2.56 percent.

On the other hand, PLDT slipped by 1.85 percent while BDO, Security Bank and Metrobank all declined.

Megawide (-0.85 percent) and Union Bank (-0.19 percent) slipped in relatively heavy volume.

In the case of Megawide, investors are awaiting notice of quarterly dividends on its preferred shares. The company assured that dividend payout is coming.

“Since Megawide’s issuance last December 2013, the company has been consistently paying out cash dividends every quarter (March, June, September, December) in accordance with the terms and conditions. This year is no exception,” the company said on Tuesday.

Shares of the country’s largest property firm SM Prime were unchanged at P30 per share after 2016 results came in line with expectations. SM Prime reported 14 percent growth in recurring net profit last year to P23.8 billion.

On Tuesday, regional investors’ jitters over a prospective interest rate hike by the US Federal Reserve as early in March were countered by upbeat expectations on China. Many believe that the worst is over for Asia’s largest economy.

As U.S. markets were closed for the Presidents Holiday on Monday, investors traded in a tight range across the region in the absence of fresh catalysts.