PSEI ends slightly higher on local buying

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

The Philippine Stock Exchange index (PSEi) added 1.49 points or 0.02 percent to close at 7,282.68. The local market was shored up by 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 as 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.

Investors also loaded up on shares of some non-PSEi stocks more aggressively. Arthaland surged 20.59 percent after disclosing the incorporation of a new subsidiary that would 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 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 its shareholders that dividend payout was coming.

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

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