Stocks continue to rise, but traders see weakness ahead of long weekend

The local stock barometer stayed afloat the 7,700 mark yesterday, tracking mostly upbeat global markets given the market-friendly results of the first round of French elections.

The main-share Philippine Stock Exchange index (PSEi) gained 25.99 points or 0.34 percent to close at 7,726.45, shaking off a bout of profit-taking in early trade.

The PSEi’s upswing was supported by some P616.71 million in net foreign buying for the day.

Michaelangelo Oyson, president of BPI Securities, said the market had seen a continuation of the relief rally following a euro-friendly development in the French elections.

“Market breathed a sigh of relief that France may continue to stay within the euro-currency bloc and avoid a Brexit (Britain’s exit from the European Union)-like market blow. Some investors are also anticipating renewed efforts by US President Trump to push his tax reform agenda that would raise US GDP growth and indirectly lift global economic growth rates,” Oyson said.

“The market closed up 26 points in tandem with most of the markets in the region. Value turnover is a respectable P6 billion. The market looks like it’s taking a breather and might soften (Thursday) as some investors may take to the sidelines over the long weekend,” said Manuel Lisbona, president of PNB Securities.

Lisbona said the market would henceforth scout for leads from the policy rate changes by the Bank of Japan and the European Central Bank as well as US gross domestic product data.

The next resistance level would be at 7,780, Lisbona said. If breached, he said the PSEi’s next barriers would be at 7,880 and 7,930.

The PSEi was led higher by the services counter, which rose by 1.44 percent, while the industrial, holding firm, mining/oil and property counters also firmed up. Only the financial counter was slightly lower.

Total value turnover for the day amounted to P6.46 billion. Market breadth was positive, with 98 advancers edging out 81 decliners while 55 stocks were unchanged.

Investors picked up shares of AGI, which rose by 2.19 percent, while PLDT gained 1.7 percent. ALI, GT Capital, BDO, SM Investments, SM Prime, JG Summit, Ayala Corp. and Semirara also firmed up.

Other investors also loaded up on non-PSEi stocks, with the likes of MRC Allied (+8.86 percent), Melco Crown (+5.49 percent), Bloomberry (+4.56 percent) and Wilcon (+3.24 percent) outperforming the PSEi and joining the list of actively traded stocks.

Elsewhere in the region, stock markets traded with upbeat sentiment, taking cue from the Dow Jones industrial index, which rose by 1.13 percent overnight.