Stocks lifted by foreign buying, region’s rally
LOCAL STOCKS returned to the green territory on Thursday on foreign buying as investors digest more corporate earnings results.
The all-shares gauge likewise climbed 0.27% or 12.93 points to reach 4,656.88 at the closing bell.
The PSEi touched a low of 7,773.17 and a high of 7,863.97 yesterday.
“There was no change in the overall picture,” Summit Securities, Inc. President Harry G. Liu said via phone on Thursday.
“It was just an ongoing consolidation as investors are slowly buying on the support level, awaiting for new economic developments going to the GDP (Gross Domestic Product) release next week.”
Most sectoral indices ended in the positive territory yesterday with property leading the gainers after adding 0.71% or 25.18 points to 3,558.46. Holding firms rose 0.70% or 55.41 points to close at 7,917.89; mining and oil gained 0.35% or 44.21 points to 12,680.54; and financials increased 0.21% or 4.06 points to 1,910.31.
Industrial and services saw declines at the end of Thursday’s session. Industrial lost 0.28% or 32.30 points to 11,201.14, while services also fell 0.74% or 12.16 points to 1,625.15.
AB Capital Senior Research Analyst Lexter L . Azurin said the market this week “will be closely monitoring” the performance of new South Korean President Moon Jae-in and earnings from top companies, as well as would rely on optimism over first quarter GDP results due out on May 18.
“It will mostly be earnings-driven this week and looking forward to Q1 GDP. Initial statements suggest favorable figures,” he said.
Equity markets rallied across Asia, with South Korean shares rebounding to a new record and Shanghai stocks reversing an earlier loss.
Wall Street wavered on Wednesday after US President Donald J. Trump fired his FBI chief.
Yesterday saw more advancers than decliners 108 to 94, while 45 stocks were unchanged.
Investors traded more issues on Thursday at 3.92 billion, with value surging to P15.59 billion from the previous day’s P10.46 billion.
Foreign funds, meanwhile bought more shares than they sold. Foreigners bought shares worth P10.07 billion (from P4.90 billion) and sold P8.78 billion (from P4.36 billion), resulting in a net buying of P1.28 billion, also more than the P540.22 million recorded on Wednesday.
From today “to the medium term,” Mr. Liu of Summit Securities said the market will continue to consolidate.
“I think market will be technically moving the support at 7,700 and resistance at 8,000. Long term trend is looking upward,” he added. -- I.C.C. Delavin with Bloomberg