Stocks inch higher as net foreign buying rises
PHILIPPINE SHARES inched higher on Tuesday on net foreign buying as investors continued to look for catalysts.
The Philippine Stock Exchange index (PSEi) climbed by 26.41 points or 0.41% to end at 6,429.65 on Tuesday, while the broader all shares index rose by 4.19 points or 0.12% to 3,390.15.
Regina Capital Development Corp. Head of Sales Luis A. Limlingan said that PSEi closed higher as investors resumed buying amid a lack of leads and after China reinstated coronavirus disease 2019 (COVID-19) restrictions.
Timson Securities, Inc. Head of Online Trading Marc Kebinson L. Lood said that the PSEi joined most Asian markets’ ascent.
“The Philippine market rose in line with regional peers, supported by net foreign buying and shaky sentiment as investors assess the impact of the COVID-19 outbreak in China, as well as the direction of Federal Reserve rate increases,” Mr. Lood said.
“While the market ended narrowly in green, decliners have notably outnumbered advancers as profit taking continued amid the absence of catalysts and rising worries on China’s COVID situation…,” AP Securities, Inc. Equity Research Analyst Carlos Angelo O. Temporal said.
Net foreign buying went up to P289.03 million on Tuesday from P170.07 million recorded on Monday.
Asian shares mostly rebounded from early losses on Tuesday, even as concerns over China’s strict COVID-19 curbs and their impact on the world economy lingered.
Beijing shut some establishments on Tuesday while more Chinese cities resumed mass testing for COVID-19 after the country recorded 28,127 new local cases on Monday.
Meanwhile, investors are awaiting more signals from Fed officials on the central bank’s next move, with markets penciling in smaller rate increases by their Dec. 13-14 meeting.
The Fed has hiked rates by 375 basis points (bps) since March, with the latest move being a fourth straight 75-bp increase earlier this month.
Back home, sectoral indices were split on Tuesday. Financials went up by 13.51 points or 0.83% to 1,633.38; property climbed by 22.54 points or 0.8% to 2,807.63; and holding firms added 47.67 points or 0.78% to end at 6,094.99.
Meanwhile, mining and oil declined by 173.57 points or 1.76% to 9,682.51; services dropped by 11.01 points or 0.66% to 1,656.55; and industrials went down by 31.55 points or 0.33% to 9,512.27.
Value turnover declined to P5.39 billion on Tuesday with 525.99 million shares changing hands from the P6.24 billion with 776.16 million shares issued on Monday.
Decliners outnumbered advancers, 117 versus 78, while 41 names closed unchanged.
Timson Securities’ Mr. Lood placed the PSEi’s support at 6,020 and resistance at 6,750, while AP Securities’ Mr. Temporal put the PSEi’s immediate support and resistance at 6,200 and 6,500, respectively. — A.E.O. Jose
