Positive Q2 earnings reports perk up PH bourse; index back to 6,500
The local stock barometer rallied back to the 6,500 territory on Tuesday as investors took heart from the recent flow of second quarter corporate earnings reports that mostly indicated resilience despite the reimposition of tighter lockdown protocols in Metro Manila and adjacent provinces.
The Philippine Stock Exchange index (PSEi) racked up 113.75 points or 1.77 percent to close at 6,560.06 as foreign funds trickled to the local market. However, trading volume remained thin amid lingering uncertainties.
“Philippine shares continued to be bought up as concerns about the Delta variant took a backseat for now, as earnings from major heavyweights continued to pour in either in line or better-than-expected. Others are keeping an eye on the July inflation report, which many believe will fall below the psychological 4 percent mark,” said Luis Gerardo Limlingan, managing director at local stock brokerage Regina Capital Development.
Juan Barredo, chief technical analyst at COL Financial, said at a recent briefing that the PSEi’s oversold levels could drive a rally towards the next resistance levels at 6,600 to 6,700.
“We wish to see a higher-low base to keep its general rally in place,” Barredo said.
“We should look for technical openings for the economic reopening. If an ECQ (enhanced community quarantine) shock comes, take the chance to slowly buy into transitory weakness,” he said.
Barredo’s preferred support level was at 6,350 but the next possible support levels were seen at 6,150 to 6,020. All counters ended higher, led by the financial, mining/oil and property counters, which all rose by over 2 percent.
The industrial, holding firm and services all added over 1 percent.
Value turnover for the day remained thin at P4.89 billion compared to over P8 billion in average since the start of the year.
There were 126 advancers that overwhelmed 57 decliners, while 54 stocks were unchanged.
For the second trading session, there was net foreign buying although still at a modest level of P108.49 million.
Shares of BDO and SM Prime both jumped by over 4 percent after releasing their second quarter earnings.
ICTSI and Jollibee both gained by close to 4 percent, while SM Investments and Metrobank added over 2 percent.
AEV, the day’s most actively traded company, advanced by 2.6 percent.
Ayala Corp. and Meralco rose by over 1 percent, while BPI, JG Summit, LTG and Metro Pacific both rose by less than 1 percent.Notable gainers outside the PSEi included Semirara, which surged by 6.98 percent, while AC Energy and Monde Nissin gained 3.36 percent and 1.49 percent, respectively.
—Doris Dumlao-Abadilla INQ
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