MANILA, Philippines - Last minute buying, particularly of banking issues, pushed the local stock market to close firmer yesterday amid renewed concerns of a recession in Europe and heightened tensions between Iran and the US.
The Philippine Stock Exchange index (PSEi) retreated in early trading as sentiment turned brittle but managed to close in positive territory in the final hour to settle at a new all-time record of 4,648.11, 2.25 points or 0.05 percent higher.
The PSEi has risen by 6.32 percent or 273.9 points since the start of the year, buoyed by a rosier outlook on the local economy.
Net foreign buying amounted to P1.42 billion, bulk of which came from SM Investments Corp. (P205.41 million), Semirara Mining Corp. (P154.9 million), Ayala Land P131.73 million
A total of 3.26 billion shares valued at P6.42 billion changed hands yesterday. This was lower than the P8.45 billion market value recorded Wednesday.
“Although the morning session’s breadth was negative, this is a welcome respite from the extended positive breadth…A retreat to initially the 4590- 4600 band, or even to the 4540-4550 level may reignite buying interest, assuming no change in the macroeconomic picture nor the fiscal and geopolitical tensions abroad,” said Jun Calaycay of Accord Capital Equities Inc.
Meanwhile, oil prices rose above $101 a barrel in Asia yesterday as concerns loomed that rising tensions in Iran would threaten global oil supplies.
“The rising tensions in Iran threatens to pose a challenge to the BSP’s inflation management mandate. In the first two weeks, prices at the local pump have risen at least twice, with yet another hike in the pipelines. This makes the Monetary Board’s rate-setting meeting on January 19th all the more interesting, as it will provide investors an early peek as to how policy-makers officially perceive the economy’s chances this year,” Calaycay said.
Calaycay said investors are concerned over the ability of European leaders to find a comprehensive solution to the eurozone’s ongoing sovereign-debt and banking crisis.