MANILA, Philippines [UPDATED] – The main index at the Philippine Stock Exchange clawed back to 5,000 level on Tuesday, March 13.
The PSEi closed at 5,005.75, up 30.58 points or 0.61%.
The index has been touching the 5,000 level during intra-day trades. The first time was on March 1.
In his recent visit to the stock exchange on March 6, President Aquino celebrated these historic highs and even challenged brokers to reach the 6,000 mark.
The index is an economic indicator of investor sentiments on the Philippines and in particular stock issues.
Net foreign buying was at P789 million.
Where it is headed
“Stocks overcame an early bout with pessimism which sent the index lower off the opening bell to muster sufficient optimism to push the PSEI just past the 5,000-line,” said Jun Calaycay of Accord Capital Equities Corp.
Among the 6 subindices, the financial counter posted the biggest advance at 3.13% led by Metropolitan Bank & Trust Co., Bank of the Philippine Islands and Security Bank Corp.
“The increased interest in banking issues arises out of the sustained health of this critical segment of the economy, the relative under-valuations of the top tier banks and, given this backdrop, anticipated first quarter earnings,” said Calaycay.
Local share prices also tracked the movement of Asian bourses, which was encouraged by modest gains in Wall Street.
Overnight, the Dow Jones industrial average added 37.69 points, or 0.29%, to 12,959.71 ahead to the Federal Reserve’s monetary policy meeting.
Tuesday’s advance accompanied by increase in value turnover may invite fence-sitters to return to the market, at least over the near-term as earnings come into play, Calaycay said.
“However, we will continue to raise a cautionary flag with the index crossing 5,000-line without fresh leads, except possibly for a technical turn,” he added. – Rappler.com