Market closes higher on last minute buying

MANILA, Philippines — The benchmark Philippine Stock Exchange index started the trading week strong, gaining 16.48 points, or 0.21 percent, to close at 7,793.25.

Likewise, the broader All Shares index ended in the green albeit by just a notch, closing at 4,605.97.

Yesterday marked the first day of trading for the week after markets shut down on Monday because of the Taal Volcano eruption that caused massive ashfall to reach Metro Manila.

Philstocks Financials said there was last minute bargain hunting supported by the anticipated signing of the US-China phase one deal. This sent the market higher, traders said.

The sectoral gauges were a mixed bag with the mining and oil, property and holding firms sectors ending in the red. Industrial, services and financials finished in positive territory.

Total value turnover was robust at P9.9 billion. Market breadth was positive with 111 gainers against 83 losers, while 54 issues were unchanged.

The stock market is expected to be on a steady path to recovery.

In a briefing yesterday, First Metro Investment Corp. officials said the Philippine Stock Exchange index is projected to climb to 8,600 to 8,900 this year with price earnings ratio of 16.8 times to 17.4 times.

FMIC head of research Cristina Ulang said corporate earnings are projected to grow by at least 10 percent, underpinned by robust macroeconomic fundamentals, supported by low interest rates and a low inflation environment.

Foreign buying was at P7.5 billion and foreign selling was at P7.4 billion for a net foreign buying of P158 million. Foreign participation comprised 75 percent while local participation was at 25 percent.