Stocks stay in green, move closer to 7,000

MANILA, Philippines — Stock investors continued on their buying spree yesterday, keeping the main index in the green, as end-quarter window dressing along with improved economic prospects boosted sentiment.

The benchmark Philippine Stock Exchange index or PSEi gained 18.77 points or 0.27 percent to close at 6,952.88 while the broader All Shares index added 28.83 points or 0.67 percent to finish at 4,325.84.

Total value turnover reached P9.9 billion. Market breadth was positive, with 115 gainers to 78 losers, while 51 issues were unchanged.

Foreign funds, however, remained net sellers for the sixth straight day at P346 million.

Chris Mangun of AAA Equities said the market closed higher as it continues to consolidate at the psychological 7,000 mark.

“The main index continues to hover right below the 7,000 key level, which is the inflection point for its movement in the long-term. Investors are deciding to be more optimistic which is resulting in higher valuations despite the sluggish pace of recovery in the fundamentals of most companies. Investors are also counting on a much stronger fourth quarter, which also gives a lot of consideration to the beginning of the campaign season for the 2022 national elections,” he said.

Mangun expects the PSEi to move sideways  as investors and fund managers perceive current price ranges to be fairly valued considering the current internal and external risks.

Alvin Arogo, vice president and head of research of Philippine National Bank, said the PSEi would continue to perform better as the market becomes more optimistic with the ‘-ber’ months – signaling the start of the holiday season.

He said the PSEi could hit 7,490 to 8,100 this year on expectations that the relatively low yield environment would allow earnings multiples to remain elevated.