Traders anticipate Santa Claus rally as PH stocks surge past 7,500
MANILA, Philippines – The Philippine Stock Exchange index (PSEi) broke past crucial resistance level and closed above 7,500 on Monday, December 3, hinting at a Santa Claus rally or a rise in stock prices in the last weeks of December to early January.
The PSEi closed at 7,532.9, 2.24% on Monday, 165.05 points higher than the previous close.
Volume turnover was at 1.49 billion shares valued at P10.22 billion. Foreign buying was at P6.56 billion, while foreign selling hit P6.68 billion.
The most active stocks were Metrobank (3.02%), Ayala Land (0.65%), SM Prime Holdings (5.19%), Aboitiz Power (4.42%), and BDO Unibank (2.3%).
All counters were in the green despite the delays in the ringing of the opening bell.
The local bourse opened at 10:15 am, much later than the usual 9:30 am, due to failure of telecommunication lines connecting the PSE's data centers, production, and disaster recovery sites.
Luis Limlingan of Regina Capital said stocks traded higher due to United States President Donald Trump and Chinese President Xi Jinping agreeing to delay the planned tariffs on $200 billion worth of imports from China from 10% to 25%.
"That step-up had been scheduled to take effect January 1, but has been delayed until 90 days from the time of the meeting, or March 1," Limlingan said.
Meanwhile, BDO Unibank chief market strategist and first vice president Jonathan Ravelas said in a tweet that the rally could extend to as high as 7,800.
Limlingan sees the PSEi ending 2018 at around 7,700.
It took almost two months for the local bourse to climb to 7,500, as it dived to 6,800 last October.
Over in the US, the S&P 500 index climbed 22.41 points to 2,760.17, while the Nasdaq Composite Index expanded 57.45 points to 7,330.54. Both indices notched their best week in nearly 7 years. – Rappler.com