Mixed trading seen as Philippine market reopens

MANILA, Philippines—The Philippine Stock Exchange index is forecast to move within a narrow band when trading resumes after a two-day holiday break.

However, some local counters may see buying interest especially with last week’s resolution of Greece’s sovereign debt crisis that prompted a rally on Wall Street.

According to AB Capital Online, the PSEi would likely trade between its resistance of 4,400 and its support level of 4,250 in the coming days from its close last Friday of 4,333.72.

Last week, the main stock barometer rose 4.01 percent, or a total of 167 points.

“Some blue chips made their significant contribution to the market, particularly the mining heavyweights, telcos and holding [firms],” the online broker said in a note to clients. “But third liners also made up for the slightly slow activity in the main index as they were actively traded during the week. The uncertainty over the outcome of talks in Europe led some investors to shy away from index issues and opt for the more volatile and speculative ones.”

Local gains were also made possible by the decision of the National Telecommunications Commission to approve the acquisition by PLDT of Gokongwei-controlled Digital Telecommunications Philippines Inc., which sent both stocks—as well as that of their rival, Globe Telecom Inc.—higher. Daxim L. Lucas