PSEi inches closer to 8,000

The local stock barometer ended a tad higher, but was still unable to break the 8,000 barrier in thin trade on Monday as investors prepared cash for upcoming initial public offerings (IPOs).

The main-share Philippine Stock Exchange index (PSEi) added 4.58 points or 0.06 percent to close at 7,996.90.

Value turnover was scarce at P4.97 billion as investors were conserving their liquidity for a number of upcoming IPOs.

Coconut product manufacturer Axelum Resources and Villar-led home improvement retailer AllHome will debut on the stock market this September, with equity deals estimated to reach as much as P16.5 billion and P18 billion, respectively.

While the index is on the verge of a breakout, local stock brokerage Papa Securities said sentiment may be mixed given the crackdown on tax-evading online gaming operators and the surge in oil prices following the attack on Saudi’s oil fields, partly offset by the passage by the House of Representatives of the tax reform package that will cut corporate taxes.

Papa Securities said that with strong momentum, there was a chance that the PSEi would breach 8,000 this week.

The PSEi was shored up by modest gains from the industrial, mining/oil and property counters.

On the other hand, the financial, holding firm and services counters declined.

There were 131 decliners that overwhelmed 68 advancers, while 47 stocks were unchanged.

ICTSI, Aboitiz Power and Meralco led the PSEi higher, rising by 4.4 percent, 3.59 percent and 2.07 percent, respectively.

Semirara, SM Prime, BPI, Jollibee, AEV and RRHI also firmed up.

One notable gainer outside the PSEi was Global Ferronickel, which rose by 4.05 percent.

On the other hand, PLDT declined by 2.41 percent, while URC lost 1.35 percent. —DORIS DUMLAO-ABADILLA