Stocks recover above 7,000 on selective buying

MANILA, Philippines — The stock market managed to close in positive territory yesterday, but trading was still very thin.

The PSEi — the local benchmark gauge that is often considered a measure of investor confidence — ended in positive territory after falling below the 6,900 mark on Monday.

The main composite index gained 20.33 points, or 0.29 percent, to close at 7,007.21, while the broader All Shares index was unable to catch up, closing 2.10 points, or 0.04 percent, lower at 4,309.31.

The sectoral counters were likewise a mixed bag. Losers were the mining and oil, financials and services sectors, while gainers were the holding firms, property and industrial indices.

Despite some returning investors, total value turnover remained thin at P5.917 billion. Market breadth remained negative, 127 to 78 with 41 issues unchanged.

Some index heavyweights managed to recover yesterday as well. Gokongwei-led JG Summit, for instance, rallied by 3.84 percent after hitting a 52-week low of 46.90 on Monday.

Ayala Corp., the country’s oldest conglomerate, also recovered and gained 1.14 percent.

Victor Limlingan of Regina Capital said capital continues to flow out of the Philippines because of rising US interest rates.

“You have capital leaving emerging markets such as the Philippines,” he said, adding this is part of a broader theme of rising interest rates.

Aggravating the negative sentiment is the trade war between US and China, which still has no end in sight. Both sides continue to warn of more tariffs.