Wall St recovery pumps up index

MANILA, Philippines — The benchmark Philippine Stock Exchange index (PSEi) rebounded yesterday, taking the cue from Wall Street’s recovery.

The main composite index finished at 7,915.30, up 74.99 points or 0.96 percent, while the broader All Shares gauge rose 23.37 points or 0.49 percent.

Likewise, all sectors closed in positive territory, with the property and the holding firms leading the gainers.

However, total value turnover was thin at P5.55 billion. Market breadth was still negative despite the strong finish of the sectors.  Decliners edged out gainers, 93 to 87 while 62 issues were left unchanged.

Traders said the PSEi jumped alongside most of its Asian peers, marking the first time since Sept. 19 that the stock market gauge ended above the 7,900 mark.

Global equities markets ended higher as earnings season starts. Markets in the west ended almost a full one percent higher. Asian markets also followed suit except for Chinese share indexes.

Foreign buying reached P3.6 billion. Foreign selling was at P2.8 billion. Net foreign selling amounted to P841 million.

Traders said all eyes would be looking at third quarter earnings, in the coming days.

“The main index ended higher yesterday bouncing off resistance at 7,920 but ending a few points away from it. It continues to trade within its congestion area between 7,750 and 7,920. If it fails to break and end above it, we may see it test support in the next few days,” said Christopher Mangun of AAA Securities.