Optimistic domestic investors prop up market; index edges closer to 7,300

The local stock barometer edged higher at the beginning of a new trading week as optimistic domestic investors scooped up shares dumped by foreign investors.

The Philippine Stock Exchange index (PSEi) added 35.19 points or 0.49 percent to close on Monday at 7,281.35. Elsewhere in the region, trading sentiment was mixed.

“The PSEi inched higher as gains from blue chip banks offset losses from large-cap property issues. The lack of selling pressure at the beginning of the trading session caused buyers to rush in and take prices higher. This early buy-up deflected any selling throughout the session as sellers backed off to allow the market to move higher,” said Christopher Mangun, head of research at AAA Equities.

However, Mangun noted an increase in selling pressures right before close, albeit this had been offset by buying support.

“Trading today is a clear indication that investors remain confident with current conditions and are willing to hold positions for the longer term,” he said.

The market’s improving sentiment was supported by a favorable news flow on coronavirus vaccine development and the government’s easing of domestic lockdown measures.

The index was led by the financial, industrial and mining/oil counters, which all added over 1 percent.

The holding firm and services counters gained less than 1 percent.

On the other hand, the property counter slipped by 0.76 percent.

Value turnover for the day amounted to P8.93 billion. Domestic investors made up for about P816.65 million in net foreign selling.

There were 134 advan­cers that edged out 75 decliners, while 58 stocks were unchanged.

Investors loaded up on shares of Security Bank, which gained 7.83 percent, while RLC rallied by 6.59 percent.

URC advanced by 4.6 percent, while BDO and Megaworld both gained over 3 percent.

ICTSI and PLDT both rose by over 1 percent.

Notable gainers outside the PSEi included Basic Energy, which soared by 32.79 percent, while Premiere Horizon advanced by 7.14 percent. Dito also added 3.75 percent.All of them traded in relatively heavy volumes.

On the other hand, SM Prime—the day’s most actively traded company—lost 2.93 percent.

GT Capital shed 1.68 percent, while Metrobank, Ayala Land, BPI, Ayala Corp. and Puregold all slipped by less than 1 percent.

Outside the PSEi, AC Energy fell by 2.36 percent. —Doris Dumlao-Abadilla INQ