Stocks recover despite thin trades, net foreign selling

MANILA, Philippines — The Philippine Stock Exchange index (PSEi) recovered yesterday, but the volume remained thin.

The PSEi finished 38.82 points, or 0.50 percent, higher at 7,747.54 while the broader All Shares gauge was up by 15.62 points, or 0.32 percent, to end at 4,795.80.

Most of the sectors finished in the green as well except for the mining and oil and property.

Volume remained thin at P5.702 billion. Market breadth was negative, 108 to 83 while 56 issues were unchanged.

The market’s decline came after Bangko Sentral ng Pilipinas Governor Benjamin Diokno signalled the possibility of the reserve ratio being cut one percentage point per quarter.

Net foreign selling continue, hitting P348 million yesterday.

COL Financial said the Philippine Stock Exchange index is in the process of running through a corrective swing and could eventually prime itself into another setup so long as the 7,500 to 7,300 support is upheld.

The first and stronger setup scenario the PSEi may unfurl would be a good one, it said.

It would have a limited pullback perhaps closer to its recent low of 7,590 followed by a counter rally either to or over its recent high.

The second set up would present a little more worry as it may involve a dart down to next support.

The market may continue to look for cues on the next support level given the lack of stronger catalyst on the domestic front, traders said.