PSEi vaults back to 7,200 territory

MANILA, Philippines — The stock market advanced for a third consecutive day yesterday, although at a slower pace than the prior two days, but still enough to re-enter the 7,200 territory.

The 30-company Philippine Stock Exchange index or PSEi closed at 7,203.72, up 19 points or 0.26 percent, while the broader All Shares index inched up 4.08 points or 0.09 percent to 4,437.17.

“The PSE index trimmed gains and consolidated below the key resistance at 7,300 as investors wait for more company earnings and the Philippine GDP report next week,” AB Capital Securities said in a market commentary.

Japhet Tantiangco, an analyst at Philstocks Financial, said the continuous decline in daily COVID-19 cases, and the lifting of curfew in the National Capital Region which is expected to boost economic activities lifted sentiment.

Wall Street’s sustained rally toward record highs also helped in yesterday’s session, he said.

“Selling pressures were noticed however with the market dropping to an intra-day low of 7,176.64, down by 0.11 percent from the preceding day,” he added.

Trading was quite active with net value turnover at P7.48 billion, above the year-to-date average of P7.30 billion. Foreigners turned net buyers with net inflows amounting to P371.99 million.

Market breadth, however, was negative, 123 to 80, while 42 issues were unchanged.

In Asia, most markets firmed up after the US Federal Reserve said it would not rush to raise interest rates but approved plans to start unwinding its stimulus program.

The Fed announced it would trim its bond buying by $15 billion a week from this month, while leaving open the option to quicken or slow the pace as needed, but signaled it would stay patient before raising borrowing costs.