Investors told to be wary of PSEi’s ‘technical’ recovery

The benchmark Philippine Stock Exchange Index (PSEi) extended gains on Wednesday in what analysts viewed as a “technical” recovery.

The PSEi rose 0.32 percent, or 19.67 points, to 6,148.31 while the broader All Shares index added 0.4 percent, or 13.11 points, to 3,266.62.

Trading volume was steady from the previous session, with 379.72 million shares valued at P4.15 billion changing hands. Foreign net buying climbed to almost P120 million, stock exchange data showed.

Jonathan Ravelas, financial strategy consultant at e-Methods for Business Management Corp., said the recent gains were a “mere technical rebound” that could extend to the 6,300 level.

He warned that risks from inflation and slowing economic growth could see the PSEi fall back below 6,000.

“Only a move above 6,850 will suggest [the rally will continue],” he said.

PSE subsectors were higher, save for property and financials, which dropped 0.54 percent and 0.16 percent, respectively.

Services gained 1.5 percent as PLDT shares surged over 7 percent after rival DITO Telecommunity announced it was open to an amicable settlement with the telco giant for debts worth about P430 million.

Ayala Land Inc. was the top traded stock on Wednesday as it closed flat at P25.80 per share.

There were 94 advancers versus 87 decliners while 44 companies closed unchanged.

—Miguel R. Camus
Read more...