PHILIPPINE SHARES ended in the green on Monday, testing resistance levels, on bargain hunting ahead of key US economic data.
The bellwether Philippine Stock Exchange index (PSEi) gained 74.53 points or 1.12% to end at 6,681.47 on Monday, while the broader shares index went up by 28.73 points or 0.83% to 3,481.17.
Regina Capital Development Corp. Head of Sales Luis A. Limlingan said the PSEi extended its climb and tested resistance levels ahead of the release of data from the United States.
“A slew of US economic data await investors to be digested this week, including November employment change, third- quarter GDP (gross domestic product) data, PMI (purchasing managers’ index) reading, non-farm payrolls, and unemployment rate,” Mr. Limlingan said in a Viber message.
“The market continued on with its countertrend rally after the main index broke a confluence of resistance levels,” AB Capital Securities, Inc. Vice-President Jovis L. Vistan said in a Viber message.
Mr. Vistan said the lack of leads was good for short-term traders, with positioning and bargain hunting lifting the market.
“Markets seemed to have stabilized and are forming a support base. Global rates may seem to be on the way up but the rising pace is slowing down as inflation have already in some countries,” he said.
Timson Securities, Inc. Head of Online Trading Marc Kebinson L. Lood said the PSEi tracked Wall Street’s rally over the weekend.
“Philippine stocks rose, following the lead of the US market, which finished the holiday-shortened week higher, buoyed by a less hawkish signal from the Federal Reserve. The minutes of the Fed’s November meeting revealed an expected shift in policy after a majority of policy makers came to an agreement that easing the phase of rate increases would be reasonable,” Mr. Lood said.
Almost all sectoral indices ended higher on Monday. Mining and oil surged by 414.56 points or 4.2% to 10,264.62; services gained 53.03 points or 3.14% to close at 1,740.94; holding firms rose by 82.56 points or 1.3% to 6,390.08; industrials added 41.47 points or 0.43% to end at 9,560.54; and financials climbed by 4.55 points or 0.27% to 1,687.42.
Meanwhile, property declined by 16.88 points or 0.57% to 2,903.93.
Value turnover climbed to P8.68 billion on Monday with 729.87 million shares changing hands from the P7.14 billion with 489.03 million issues traded on Friday.
Advancers outnumbered decliners, 112 versus 77, while 40 names closed unchanged.
Net foreign buying went up to P914.01 million on Monday from the P842.26 million seen on Friday.
For Tuesday, AB Capital Securities’ Mr. Vistan placed the PSEi’s immediate support at 6,630 and resistance at 6,720. — A.E.O. Jose