The local stock barometer surged to a new high on Monday on selective buying of large-cap stocks after last Friday’s breakout into the unprecedented 9,000 level.
Tracking mostly firmer regional markets, the Philippine Stock Exchange index (PSEi) reversed early losses and ended 17.42 points or 0.19 percent higher to close at a new high of 9,058.62. A new intra-day peak of 9,078.37 was also hit.
Following Friday’s breakout from the 9,000 barrier, Papa Securities said in a research note that the next barrier would be at 9,160 while 9,200 would be the next psychological resistance.
“Looking forward, we note that the index is entering overbought territory once again in terms of RSI (relative strength index) – although trading at overbought levels is not an uncommon occurrence for breakouts,” Papa Securities said.
“With this in mind, it would be better to accumulate during any further dips given that this breakout above 9,000 should serve as a bullish indicator that the index would continue its long-term uptrend,” it added.
On Monday, the PSEi was perked up by the services counter, which added 2.33 percent, while the financial, holding firm and mining/oil counters also firmed up.
On the other hand, the industrial and property counters slipped.
Total value turnover for the day amounted to P8.87 billion. Foreign investors were net sellers although at a modest level of P86 million.
Despite the PSE’s gain, market breadth was negative. There were 116 decliners that outnumbered 95 advancers while 55 stocks were unchanged.
The PSEi was led higher by telecom stocks PLDT and Globe, which respectively surged by 6.52 percent and 8.76 percent.
Investors also picked up shares of Ayala Corp., which gained 4.13 percent, while SM Prime and BPI both added over 1 percent.
Shares of Megaworld and Security Bank also firmed up.
Outside of the PSEi, notable gainers included Now Corp., which surged by 10.73 percent. Now is among those aspiring to be the third telecom player in the country.
On the other hand, ALI, AGI and Jollibee all slipped by over 2 percent while Metrobank and SM Investments lost over 1 percent.
BDO, URC, ICTSI and DMCI also faltered.
Non-PSEi stocks Vista Land and Megawide respectively slipped by 3.08 percent and 0.46 percent in relatively heavy volume.