Local shares rebound as Wall Street posts gains
THE main index rebounded on Tuesday, tracking US stocks which edged higher overnight, led by gains in technology stocks as investors were optimistic ahead of earnings.
The broader all shares index also inched up 0.02% or 1.17 points to 4,714.15 points.
“The PSEi bounced back after a rough start [on Monday], aligning with US equities, which closed mostly higher on Monday with the tech and material sectors rebounding further,” said Regina Capital Development Corp. Managing Director Luis A. Limlingan in a mobile message.
Overnight, the Dow Jones Industrial Average fell 5.82 points or 0.03% to end at 21,408.52,; the S&P 500 gained 2.25 points or 0.09% to 2,427.43; and the Nasdaq Composite added 23.31 points or 0.38% to 6,176.39.
Harry G. Liu, president of Summit Securities, Inc., said markets are “basically in technical consolidation,” a period wherein markets do not move beyond the support and resistance levels, which are seen at 7,700 and 8,000 for the PSEi, respectively.
“The longer the consolidation, the more that will be the direction we would take. Right now, it is lackluster, there’s no catalyst to bring it up, no negative big bad news to bring it down. All I can see from the technical point of view: should anything bridge the upper and the lower, definitely a decisive direction will occur,” Mr. Liu said in a phone interview.
Mr. Liu added that local markets will be turning to Wall Street for guidance especially after the semi-annual testimony of Fed Chair Janet L. Yellen before the US Congress scheduled overnight, wherein she is expected to speak on economic conditions and hint on the US central bank’s tightening plans.
Of the sectoral counters, only industrials ended in the red, declining 0.05% or 5.50 points to 11,062.94.
Services increased 0.61% or 10.41 points to 1,694.68; property climbed 0.60% or 22.11 points to 3,653.35; mining and oil expanded 0.30% or 38.68 points to 12,633.31; financials edged 0.10% higher or 2.03 points to 1,970.50; and holding firms inched up 0.03% or 3.08 points to 7,837.52.
Losers outnumbered advancers at 118 to 86, while 50 names were unchanged.
Value turnover climbed to P7.17 billion, slightly higher than the P7.09 billion logged on Monday, as 1.54 billion shares changed hands.
Foreigners turned net sellers anew at P63.60 million, reversing Monday’s net purchases worth P35.50 million in the prior trading day.
Most Southeast Asian stock markets moved sideways on Tuesday in thin trade as investors remained cautious Ms. Yellen’s monetary policy testimony.
Singapore was the biggest decliner in the region, shedding as much as 0.6%. Thai shares fell as much as 0.3% before paring some losses. Indonesian shares slipped to touch a three-week low. Malaysia and Vietnam were largely flat. -- J.C. Lim with Reuters