PSEi closes up 0.55%; next barrier seen at 7,440-7,500

The local stock barometer yesterday crept higher for the third straight session as domestic investors selectively picked up large-cap stocks dumped by foreign players.

The main-share Philippine Stock Exchange index (PSEi) gained 39.38 points or 0.55 percent to close at 7,267.34 in thin trade.

A breakout from the recent trading range of 6,900 to 7,200 could point to the next level of 7,440-7,500 as the next barrier, local stock brokerage Papa Securities said. This is likewise the area where “it would be apt to start taking profits,” the brokerage said.

The PSEi was shored up by the financial, industrial, holding firm and property counters, while the services and mining/oil counters slipped.

Total value turnover was thin at P4.78 billion. Foreigners were net sellers amounting to P424.85 million.

Despite the PSEi’s gain, market breadth was negative. There were 97 decliners that edged out 88 advancers, while 50 stocks were unchanged.

The PSEi was led higher by Globe Telecom, which rose by 3 percent, while URC and Megaworld both added over 2 percent.

SM Investments and Metrobank both gained over 1 percent.

BPI, SM Prime, ICTSI and Meralco also contributed to the PSEi’s gains.

On the other hand, PLDT lost 2.08 percent, while GT Capital and Security Bank both slipped.

Elsewhere in the region, stock markets traded with mixed sentiment. The market focused on the yuan amid talks from the central bank about China aiming to keep its currency at a stable and reasonable level.