Analyst: PH shares running out of steam after 4 days of rally
The benchmark Philippine Stock Exchange index (PSEi) advanced for the fourth straight session, lifted by large conglomerates, property developers and banks. A stock market veteran said technical indicators were flashing warning signs that a pullback was imminent.
By the closing bell on Monday, the PSEi added 1.43 percent, or 96.18 points, to 6,822.32 while the broader all-shares index was up 1.03 percent, or 36.94 points, to 3,633.07.
Incoming economic team
Philippine shares gained ground amid positive regional sentiments, lifting most indices in Asia. The market was also given an early glimpse of plans by the incoming administration’s economic team the previous week.
BDO Unibank Inc. chief strategist Jonathan Ravelas said the recent rally was accompanied by weak trading volume, which was a sign the PSEi was approaching resistance and possibly reverse course.
“Near-term bias remains tilted to the downside,” Ravelas said on his Twitter account after the market closed.
Meanwhile, data from the PSE showed net foreign buying to the tune of P69 million. There were 114 gainers against 76 decliners while 51 companies closed unchanged.
Converge ICT Solutions Inc. was the top traded stock as it sank 1.7 percent to P26.05 per share.
It was followed by SM Prime Holdings, up 0.53 percent to P38; Ayala Land Inc., up 2.6 percent to P29.60; SM Investments Corp., up 2.8 percent to P862; and BDO Unibank Inc., up 2.2 percent to P130.10 per share.
Monde Nissin Corp., down 5.28 percent to P15.80; Ayala Corp., up 3.16 percent to P701; Metropolitan Bank & Trust Co., up 2.42 percent to P55.10; Bank of the Philippine Islands, up 1.99 percent to P97.50; and AC Energy Corp., up 3.17 percent to P7.17 per share.
