PSE index clings to 7,000

The local stock barometer ended a tad higher on Tuesday, clinging to the 7,000 mark in thin trade amid mixed sentiment across the region.

The main-share Philippine Stock Exchange index (PSEi) added 8.56 points or 0.12 percent to close at 7,059.38 on selective buying of large-cap stocks.

“Technically, we might be seeing some of the bullish divergence (weakening selling momentum) take effect especially with the PSEi trading briefly in the green (Monday) morning,” Papa Securities said.

Papa Securities expects more of these short-term periods of strength in the coming days especially with the divergence situation of the relative strength index, a key technical indicator, remaining intact.

“Trend is still geared to the downside, however, with the presence of foreign outflows, so it might be best to lock in any immediate gains. Next support is now at previous 2018 low of 6,923.67,” the brokerage said.

The PSEi was shored up by the property counter, which added 1.18 percent, while the industrial counter firmed up by 0.92 percent.

The rest of the counters tumbled.

Value turnover was thin at P3.99 billion.  Foreign investors continued to shy away from the market resulting in a net outflow of P158 million for the day.

Despite the PSEi’s gain, market breadth was negative.  There were 103 decliners that edged out 75 advancers while 53 stocks were unchanged.

Jollibee outperformed the market for the day, gaining 3.87 percent.

SM Prime, Ayala Land and SM Investments all rose by over 1 percent, while ICTSI also contributed to the PSEi’s modest gain.  —DORIS DUMLAO-ABADILLA