MANILA, Philippines (Xinhua) - The stock market further extended its gains, albeit marginally, on Tuesday but investors participation remain low.
After flirting in the negative territory most of the session, the bellwether Philippine Stock Exchange index managed to claw back to the positive turf and closed the session with a 1.11 points or 0.02 percent gain. It ended at 7,277.74 , while the all share index posted a gain of 3.02 points or up by 0.07 percent to 4,285.74.
Trading volume reached 2.08 worth P10.03 billion ($223.93 million) with 84 stocks advancing, 98 declining, and 38 unchanged.
Three of the six counters were down. These were the financials, services, and property sectors.
"Philippine shares appears to have showed up its Asian neighbors and global peers once more. After 'towing-the- pessimistic-line' practically all share markets traced in the early part of the day, the PSEI posted a relatively strong recovery in the afternoon session. It climbed out of an early 52.2- point hole and eventually pushing to the green as the day's clock ran out," analyst Justino Calaycay of Accord Capital Equities Corp. said in his daily sock market comment.
Inflation numbers are due to be released later in the week presenting a potential source of "lift" or "drag" to share prices. The consensus that has formed appears to be within the vicinity of 3.0 percent and 3.5 percent thus ensuring that that full-year number will fall within the assumptions laid out by the government in its over-all economic development plans.
One big reason for the rather tame expectations, despite the seasonally high spending patterns over the holidays is the steep drop in global oil prices that has seen lower adjustments on domestic pump prices.
"This could be something the market is currently discounting as it diverges from global trends.
The only concern that arises out of the current market is that participation remains relatively low as evidenced by less-than- average value turnovers. That picture should change in the coming days," Calaycay said.
Stocks in the 30-company index closed mixed. Investors dumped shares of heavyweight Philippine Long Distance Telephone Co. and Ayala Land, Inc. but picked up Ayala Corp. shares.