PSEi rallies by 0.71% on ‘window dressing’
THE Philippine Stock Exchange index (PSEi) rose by 55.10 points or 0.71% to 7,843.16 on Friday to end the quarter with gains, validating analysts’ expectations that periodic window-dressing will boost local equities.
“Philippine markets closed on a positive note this Friday and at the end first half of the 2017 in the much anticipated window dressing session,” said Luis A. Limlingan, business development head at Regina Capital Development Corp.
The index reading at end-March was 7,311.72 and 6,840.64 on the last trading session of 2016.
The wider all-shares index also finished in the green as it rose by 29.38 points or 0.63% to close at 4,692.03.
“The reason -- window-dressing,” said Miguel A. Agarao, vice-president of Philequity Management, Inc.
Four of the six sectoral indices advanced, led by holdings firms, which rose by 80.24 points or 1.03% to 7,889.12. Property stocks followed, rallying by 35.39 points or 0.99% to 3,606.79. Financials added 9.28 points or 0.48% to 1,937.94, while industrials gained 5.94 points or 0.05% to 10,963.35.
Services slipped 8.14 points or 0.48% to 1,687.64, while mining and oil stocks gave up 11.56 points or 0.09% to finish at 12,567.75.
Still, losers outnumbered gainers at 118 to 89, while 38 issues closed unchanged. Value turnover improved to P9.9 billion worth of shares, higher by 27% compared with P7.78 billion the previous trading session.
Foreign buying was strong, resulting in net purchases of P1.03 billion, more than eight times Thursday’s P118.61 million.
Mr. Limlingan said the PSEi on Friday shrugged off the performance of US equities, which fell sharply on Thursday after the slide of both the Dow and the S&P to suffer their biggest one-day decline since May.
The losses came as the technology sector resumed its downward trend, he said, overshadowing the positive news in the financial sector.
“Federal Reserve Chairwoman Janet Yellen will deliver her twice-a-year update on the economy to the House of Representatives on Wednesday, July 12, a congressional committee said. She’ll also appear before the Senate, most likely the next day. A date and time has not been announced yet, however,” he said.