PSEi nears ‘inflection point,’ but health crisis still a major drag
The local stock barometer ended the week on an upbeat note as concerns over major central banks’ withdrawal of monetary stimulus diminished.
The Philippine Stock Exchange index (PSEi) added 46.49 points or 0.67 percent to close at 6,970.51 on Friday.
For the week, the main index added 73.38 points or 1 percent despite the rise in local COVID-19 cases to new highs.
“The PSEi advanced as investors and fund managers continue to hold on to their positions despite several risk factors. The steady pace of inoculation and the decline in the fatality rate of COVID-19 may have drawn some optimism despite the deferral on the easing of restrictions and the spike in inflation,” said Christopher Mangun, head of research at AAA Equities.
Elsewhere in the region, most stock markets rebounded after two days of losses.
At the local market, the services and mining/oil counters led the day’s gains, both adding over 1 percent.
Article continues after this advertisementThe industrial, holding firm and property counters all firmed up by less than 1 percent.
Article continues after this advertisementValue turnover for the day amounted to P4.88 billion. There was modest net foreign selling of P53.32 million.
“The market is reflecting the current economic and social condition. The PSEi is just a few points away from the 7,000 key level, which is its inflection point. The market’s movement in the coming days will determine its trajectory in the medium to long term. This is also the case for the economy and the handling of the pandemic response. We are at a make-or-break moment in terms of the economic recovery and the health crisis management,” Mangun said.
Stock valuations could continue higher should PSEi break the 7,000 barrier in the coming sessions, Mangun said.
“Nonetheless, we advise investors to lighten positions as individual issues approach their respective resistance levels,” he said.
A hundred advancers edged out 90 decliners, while 54 stocks were unchanged.
Investors picked up shares of ICTSI, Globe Telecom and AEV, which all rose by over 2 percent.AC Energy, the day’s most actively traded company, gained 1.2 percent.
Converge and Ayala Land both rose by over 1 percent, while PLDT, Megaworld, SM Investments and GT Capital all added less than 1 percent.
