Good earnings lift PSE index above key resistance level

The benchmark Philippine Stock Exchange index (PSEi) closed at its highest level in nearly two months after a relatively strong third quarter earnings season and new data showing an uptick in remittances from Filipinos working overseas.

By the closing bell on Tuesday, the PSEi rose 1.01 percent, or 64.18 points, to 6,418.94—above what technical analysts consider a key resistance level. The broader All Shares index also added 0.81 percent, or 26.99 points, to 3,379.58.

Total trades stood at 725.7 million shares valued at P5.1 billion. Foreigners were also net buyers amounting to about P523 million, data from the stock exchange showed.

Investors cheered data from the Bangko Sentral ng Pilipinas (BSP) showing overseas Filipino remittances hitting $2.84 billion in September, up 3.8 percent from the same period last year.

With earnings in the rear view mirror, pundits were also placing bets ahead of the BSP’s rate-setting meeting on Nov. 17.

Last Friday, BSP Governor Felipe Medalla reiterated his intention to vote for a 0.75 basis point hike to match the latest policy move by the US Federal Reserve.

Meanwhile, PSE subsectors were mostly higher, save for property, which sank 0.59 percent.

Holding firms gained 1.94 percent, followed by services, up 1.49 percent; mining and oil, up 1.48 percent; industrial, up 1.4 percent; and financials, up 0.17 percent.

SM Prime Holdings Inc. was the top traded stock as it slipped 1.55 percent to P34.95 per share.

It was followed by Ayala Corp., up 2.38 percent to P687; Converge ICT Solutions Inc., up 8.91 percent to P13.94; SM Investments Corp., up 3.33 percent to P870; and Universal Robina Corp., up 1.49 percent to P129.80 per share.