PSEi rebounds to start Q2 as heavyweights gain
STOCKS picked up from last week’s slump to give the second quarter a fresh start, with index heavyweights seen to dictate trading in the coming days.
The broader all-shares index was also up by 13.71 points or 0.31% to close at 4,413.42.
“The market recovered from the slump last Friday, with stocks like (Ayala Land, Inc.) showing recoveries and others like (SM Prime Holdings, Inc.) with stronger performances,” RCBC Securities, Inc. analyst Jeremy G. Yumul said in a phone interview.
SM Prime Holdings, Inc. was the most active stock on Monday, adding 40 centavos or 1.41% apiece to close at P28.70. Wilcon Depot, Inc. followed as it ended at P5.35 apiece, up by two centavos following its strong stock market debut last Friday.
“Philippine markets got off to a fresh start in [the second quarter], and were undeterred that the major US stock averages ended the session lower on Friday,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in an e-mail.
Wall Street fell on Friday as investors wrapped up a strong quarter and weighed whether corporate earnings reports will justify the market’s lofty valuations.
Investors are now looking to the upcoming quarterly earnings season to justify pricy valuations.
The Dow Jones Industrial Average fell 0.31% to end at 20,663.22, while the S&P 500 lost 0.23% to 2,362.72. The Nasdaq Composite slipped 0.04% to 5,911.74.
RCBC’s Mr. Yumul said investors will assess the plans of big market players, citing San Miguel Corp.’s planned $34-billion investment in projects this year, Jollibee Foods Corp.’s Italy foray, and the Ayala group’s venture into the logistics business.
All counters were in positive territory, although upticks were below 1% for all sectors. Financials led the charge with a 14.06-point or 0.77% increase to 1,834.62, followed by property, which rose 0.73% or 22.70 points to 3,148.63. Services climbed 0.71% or 11.02 points to 1,563.17; mining and oil sector added 0.66% or 78.81 points to 12,051.02; and the industrials and holding firms counters rose by 0.01% apiece to end at 10,949.65 and 7,450.34, respectively.
Advancers trumped decliners, 99 to 81, while 49 issues were unchanged.
Value turnover came in at P6.24 billion on Monday with 1.02 billion shares changing hands, down from Friday’s P9.18 billion.
Net foreign buying ballooned to P647.28 million yesterday from P4.64 million the previous session.
Mr. Yumul said the PSEi could trade within 7,270 to 7,360 in the coming days, with no significant drivers expected.
“We still think the index will trade in the range of 7,250-7,400 this week, without any major leads thus far,” Regina Capital’s Mr. Limlingan added. -- Arra B. Francia with Reuters