Philippine stocks on technical rebound
MANILA, Philippines—Local stocks continued a technical rebound on Tuesday but gains narrowed at close as investors took advantage of rallies to trim their equities exposure.
The main-share Philippine Stock Exchange index added 4.43 points, or 0.09 percent, to finish at 4,958.43.
The index was up by 39.46 points in morning trade as global risk appetite was boosted by hopes of pump-priming in China and Europe. But as many investors sold on rallies, the index ended only slightly higher.
Most counters stayed afloat. The property counter, however, declined by 1.11 percent.
Value turnover was thin at P4.3 billion. There were 79 advancers that narrowly edged out 78 decliners while 36 stocks were unchanged.
The index was led higher by DMCI (+1.93 percent), Manila Water (+1.68 percent), Ayala Corp. (+3 percent), SM Investments (+0.37 percent) and RLC (+0.99 percent). Among the non-PSEi gainers were Bloomberry, Philex Petroleum and Security Bank.
On the other hand, the PSEi’s gains were tempered by the decline in share prices of the PLDT, Philex, Metrobank, Megaworld, ALI, URC, BPI, Semirara, AGI and AP. EastWest Bank shares also declined.
“Moving forward, the local bourse is still seen consolidating as all eyes will still be on Europe this week,” a research from Metropolitan Bank and Trust Co. said. “Investors are advised to reduce exposure in equities and have a ‘wait and see’ attitude as downside risks are still very much present.”
Metrobank noted that the US April existing home sales, April new home sales, April durable goods orders, jobless claims and the May consumer sentiment would be among the overseas economic data to watch out for this week.
“Sentiment rebounds on hopes for better growth in China and push to keep Greece in the Eurozone,” investment bank Credit Agricole CIB said, adding that the rebound in risk appetite may be short-lived.
