The local stock barometer sustained its rally beyond 7,000 on Wednesday as investors looked forward to better economic and earnings prospects in the coming year.
The main-share Philippine Stock Exchange index (PSEi) rose by 71.06 points, or 1.01 percent, to close at 7,080.62, in line with mostly upbeat regional markets. Favorable news about coronavirus vaccine developments boosted risk-taking in recent weeks.
“The PSEi continued higher as it drew momentum from the big move that we saw in the previous session. It started the day slightly lower but then, a pick-up in buying pressure pushed prices higher. Blue chip property and holding firms continue to lead the market’s gains. We may start to see it move sideways in the coming trading sessions as enthusiasm wears off,” said Christopher Mangun, head of research at AAA Equities.
“It seems like (Tuesday’s) PSEi rally couldn’t have come at a more opportune time as the index also slightly filled the 6,700-6,800 gap we’ve been flagging these previous days as its major support level,” local stock brokerage Papa Securities said.
Technical readings signal a return to the recent highs of around 7,200, especially since the relative strength index had yet to show overbought signals, the brokerage said.
The holding firm counter added 1.88 percent, while the financial, industrial and property counters all rose by less than 1 percent.
The services and mining/oil counters, however, slipped by less than 1 percent.
Value turnover for the day amounted to P8.8 billion. Domestic investors supported the PSEi’s rise, making up for P282.35 million in net foreign selling for the day.
There were 108 advancers that edged out 116 decliners, while 39 stocks were unchanged.
The PSEi was led higher by JG Summit, which racked up 5.47 percent, while Metrobank added 2.93 percent and was the day’s most actively traded company.
Ayala Land, SM Investments,Robinsons Land, Globe Telecom and Jollibee all added over 1 percent.
On the other hand, SM Prime and Aboitiz Power rose by less than 1 percent.
Outside the PSEi, notable gainers included Dito and Now Corp., which rose by 3.88 percent and 2.99 percent, respectively.
PLDT lost 1.45 percent, while BPI and BDO slipped by less than 1 percent.
One notable decliner outside the PSEi was construction firm Megawide, which fell by 7.27 percent on news that the National Bureau of Investigation had recommended the filing of antidummy law violation against the company and its officers. —DORIS DUMLAO-ABADILLA