Index barely moves on lack of catalysts

MANILA, Philippines — The stock index barely moved in a subdued session yesterday as the lack of market catalysts kept investors on the sidelines, traders said.

The 30-company benchmark Philippine Stock Exchange index (PSEi) gained a mere 0.97 point, or 0.01 percent, to close at 6,245.71, while the broader All Shares index inched up 5.51 points, or 0.14 percent, to settle at 3,852.90.

A total of P4.83 billion worth of shares changed hands in yesterday’s trading, with a positive market breadth as winners beat losers, 115 to 82, while 47 issues were unchanged.

In a market commentary, AB Capital Securities said the local market fluctuated between gains and losses for the session amid lack of catalyst.

Net foreign selling persisted for the third straight session with P458 million.

“It was another quiet trading session in the Philippines, as another bout of earnings results from major US retailers slightly cooled fears of high inflation,” Regina Capital’s head of sales Luis Limlingan said.

He said investors kept their trading activities at a minimum to assess the developments in the vaccination programs globally and monitor a new wave of income reports in the US.

Christopher Mangun, head of research at AAA Equities, said he expects the PSEi to move sideways for the remainder of the week, cooling off from the lose-and-gain trend last week.

Mangun said some investors are now determined to retain their shares for the long run, as they pin their hopes that the economy will rebound by the second half of the year.

“The main index has started to move sideways again after the massive drop and recovery that we saw last week. This relieved a lot of selling pressure and showed there are some investors who are willing to hold on for the longer term in anticipation of the economy’s recovery,” he said.