PSEi gains 0.59%, closes above 8,000 level

The local stock barometer yesterday retested the 8,000 mark, tracking mostly upbeat regional markets as jitters over North Korea waned.

The main-share Philippine Stock Exchange index added 47.29 points or 0.59 percent to close at the intra-day peak of 8,009.41.

Luis Gerardo Limlingan, managing director at Regina Capital Development, said Philippines stocks were “not out of the woods” despite trading on a positive note.

“With earnings season coming to an end, the (Philippine) second quarter GDP (gross domestic product) which will be announced on Thursday could make or break the index prior to the official start of ghost month,” Limlingan said.

The ghost month, which will start this year on Aug. 22 and end on Sept. 19, refers to a period in the Lunar calendar when Chinese investors avoid making big-ticket investments or other big moves like getting married or moving to a new house. This period also coincides with the season when many investors from the West take long summer breaks, resulting in slower trading volumes.

For this breakout to be confirmed, the PSEi will have to stay above 8,000 for several days with enough volume, after which the next target would be 8,300.

Except for mining/oil, all counters firmed up led by the industrial counter which advanced by 1.2 percent.

Foreign investors were net buyers amounting to P197.52 million.

Total value turnover for the day was thin at P4.8 billion.

There were 121 advancers, edging out 82 decliners while 44 stocks were unchanged.

The PSEi was led by URC, which gained 3.3 percent while Megaworld, Ayala Corp., EDC and Jollibee all advanced by more than 1 percent. Security Bank, Ayala Land, Puregold, SM Prime, ICTSI and MPI also gained.

Outside of the PSEi, notable gainers included Wilcon and Chelsea, which rose by 5.88 percent and 6.53 percent, respectively.

On the other hand, SMIC, BDO and Semirara slipped.

Outside of the PSEi, GERI declined by 2.4 percent while Melco and Bloomberry also slipped.