Taking cue from overseas markets, PSEi makes another push toward 8,000

The benchmark Philippine Stock Exchange index (PSEi) gained on Monday, taking its cue from overseas markets and as investors bet that the powerful US Federal Reserve would continue to favor a loose monetary policy that has been a boon to equities markets.

The PSEi on Monday gained 0.62 percent, or 48.6 points, to 7,934.50; while the broader all shares index was up 0.36 percent, or 17.19 points, to 4,753.

“Philippine markets swung back to gains from Friday’s losses with US indices closing Friday’s session higher from the mixed sentiments brought by corporate bank results and poor data on retail sales and inflation—leading participants to suspect Fed is back on a dovish mindset,” said Luis Gerardo Limlingan, managing director at Regina Capital Development, on Monday.

Subsectors were mostly higher on Monday, with only financials closing in the red—or a decline of 0.03 percent. Gainers were led by property, up 0.9 percent, and holding firms, up 0.79 percent.

Volume, however, was relatively lower with 3.4 billion shares valued at P6.57 billion changing hands yesterday.

Data from the PSE showed that there were 103 gainers against 105 decliners, while 51 companies closed unchanged.

“This is the third time the index is testing [the] 8,000 level in three consecutive months, showing high volatility in the market. Technical indicators are neutral, we recommend to trade [in] the range,” Limlingan said.