Investors found some relief in the stock market on Tuesday, riding on mostly upbeat regional markets as the local first quarter earnings season began.
The main-share Philippine Stock Exchange index (PSEi) racked up 124.53 points, or 2.28 percent, to close at 5,574.98 in thin trade.
“Most Asian stock markets moved higher again (Tuesday) despite the decline in crude oil prices after the largest US oil exchange-traded fund started selling all its front-month crude contracts, in favor of longer-term contracts. The move is set to avoid a situation like last month, when US crude oil futures prices went negative on the day that the contract was set to expire. Oil stockpiles remain at record highs as demand is heavily depressed,” said AAA Equities head of research Christopher Mangun.Mangun said the stock market opened strongly on Tuesday. As selling was minimal, he said this signaled buyers to come in, allowing the main index to end at the day’s peak.“Trading volumes remain below average as investors analyze the recent easing of restrictions on businesses. First quarter earnings reports have also begun to come in which will give a clearer outlook on the state of our economy,” Mangun said.
Mangun noted that retail traders were active for the day, triggering volatility for several speculative issues.
“The PSEi may continue higher to test resistance at 5,800 in the coming day,” he said.The main index was led higher by the industrial, holding firm and property counters, which all added over 2 percent.The services counter added 1.48 percent, while the financial counter rose by 0.58 percent.On the other hand, the mining/oil counter declined by 4.12 percent. —Doris Dumlao-Abadilla INQ