PSEi gains slightly but remains on ‘shaky ground’

MANILA  -The Philippine Stock Exchange index (PSEi) modestly increased on Tuesday as bargain hunters emerged even as overall sentiment remained jittery.

The PSEi added 0.11 percent, or 6.72 points, to 6,335.91 while the All Shares Index rose 0.09 percent, or 2.98 points, to 3,400.87.

“The market was marginally higher amid cautious bargain-hunting after China announced a surprise cut to a key policy rate in an attempt to boost its flagging economy,” Juan Paolo Colet, managing director at China Bank Capital Corp., said in a note to investors.

“The index remains on shaky ground as many investors are worried about disappointing macroeconomic data from China and rising US yields.”

The PSE is trading just above the 6,300 barrier. The previous support of 6,400 now acts as short-term ceiling, Colet noted. A total of 472.74 million shares valued at P24.82 billion changed hands.

The volume spike was due to P20.84 billion worth of trades by SM Investments Corp., believed to be an internal transaction among major stockholders.

The services, property, financials and holding firms rose while mining and oil/industrial indices slumped.

SM, the most actively traded stock, slipped 0.81 percent to P860 per share.

Ayala Land Inc. was up 2.07 percent; Bank of the Philippine Islands, up 0.61 percent; SM Prime Holdings, down 0.17 percent; and Universal Robina Corp., down 4.65 percent.