PSEi rises 1% but falls short of 8,600 level

Advertisement
Font Size

SHARE PRICES closed higher on Tuesday, just short of the 8,600 level, after a dip in US bond yields fueled investor confidence in the equities markets.

PSEi rises 1% but falls short of 8,600 levelThe bellwether Philippine Stock Exchange index (PSEi) rose 92.40 points or 1.08% to 8,592.38. The all-shares index gained 52.35 points or 1.03% to 5,118.73.

“(On Monday), our market hit major support at 8,380 and this, along with the US rally, provided the impetus to recover,” COL Financial Group, Inc. Chief Technical Analyst Juanis G. Barredo said via text.

“Also we saw US bond yields slip which boosted some confidence — US bond yields are seen as a precursor for interest rate trends and their rise caused the large market hiccup few weeks ago,” Mr. Barredo added.

US bond yields fell on Monday to around 2.859%, as analysts said they expect inflation data to negatively impact fixed-income markets.

The PSEi’s gains follow the general upswing seen in international markets, as the Dow Jones Industrial Average picked up 1.58% to 25,709.27. The S&P 500 index climbed 1.18% to 2,779.60, while the Nasdaq Composite index rose 1.15% to 7,421.47.

“I think we’re just playing catch-up with the rest of the region. Last week, we underperformed regional markets. So this time around, Asia is down, but the PSEi advanced, trying to make up for last week’s performance,” RCBC Securities, Inc. Equity Analyst Jeffrey Lucero said in a separate text message.

Mr. Lucero also noted that BDO Unibank, Inc. accounted for a significant amount of PSEi’s gains, as it reported a 7% profit increase to P28.1 billion on Monday.

BDO was among the top 20 most active stocks for the day, jumping 4.67% to P157. Other stocks that advanced were JG Summit Holdings, Inc., up 5.63% at P75; Alliance Global Group, Inc., up 4.03% at P14.98.

Meanwhile, mining and oil was the one weaker sector, losing 82.64 points or 0.67%   to 12,229.39.

The industrial sub-index led the day’s gainers, with an increase of 186.34 points or 1.65%   to 11,427.91. Holding firms rose 110.29 points or 1.27% to 8,732.47; financials rose 25.17 points or 1.13% to 2,236.93; services added 14.20 points or 0.81% to 1,751.34; while property rose 19.64 points or 0.51% to 3,813.29.

Volume was 3.55 billion shares, worth P9.25 billion, slightly lower than P9.89 billion on Monday. A total of 119 shares advanced while 94 declined and 43 were unchanged.

Foreign investors were net sellers of P276.98 million worth of shares on Tuesday, narrowing from net sales of P1.53 billion on Monday. — Arra B. Francia