Year-end window dressing pulls local stocks higher

MANILA, Philippines — Local stocks defied the weakness in Asian markets yesterday as investors returned from the Christmas break to start their year-end portfolio realignment.

The Philippine Stock Exchange index (PSEi) rose 1.02 percent or 72.94 points to end at 7,2254.80, while the broader All Shares index grew 0.54 percent or 20.70 points to settle at 3,842.96.

“Markets quietly were bought up in low value turnover environment, with very few catalysts and most preparing for the year-end window dressing,” said Luis Limlingan, managing director at Regina Capital and Development Corp.

Total value turnover stood at P3.87 billion.Market breadth was positive as advancers beat decliners, 87 to 83, with 51 stocks unchanged.

Stock portal 2TradeAsia said volatile sessions should be expected this week as market players would be on the watch for year-end window dressing, especially for large cap issues.

Around Asia, stocks weakened in holiday-thinned trading  as uncertainty over the economic impact of the Omicron coronavirus variant weighed on investor sentiment.

“Omicron cases are surging in the US and Europe, and although markets have well and truly priced in a less virulent strain, the disruption to goods and services from isolating workers, notably air travel, seems to be the main fallout so far,” said Jeffrey Halley, senior Asia – Pacific market analyst at Oanda. “That is only likely to cause short-term nerves, with the global recovery story for 2022 still on track.”

US airlines have canceled or delayed thousands of flights over the past three days due to COVID-19-related staff shortages, while several cruise ships had to cancel stops after outbreaks on-board.