Index snaps 2-day drop on technical bounce

MANILA, Philippines - A technical bounce managed to arrest the two-day drop of the bellwether index despite another lackluster session.

The Philippine Stock Exchange index inched up 0.05 percent or 3.67 points to 6,834.04, while the broader all shares index shed 0.05 percent or 2.02 points to finish at 4,100.61.

Justino Calaycay Jr., an analyst at Accord Capital Equities Corp., said the main index held off the bears at 6,820 after consecutive days of decline inspired bargain hunting and technical trades.

“However, with the mix of expectations tempering the near-term outlook, the market may be kept within a tight trading band, unless more compelling reasons surface overnight,” Calaycay said.

Calaycay said strong gains in regional and global markets failed to rub off on local investors.

US markets began the week on a positive note on the back of robust earnings of Citigroup and corporate deals in the healthcare sector.

On Monday, the Dow Jones Industrial average picked up 0.66 percent or 111.61 points to 17,055.42, while the broader Standard & Poor’s 500 index rose 0.48 percent or 9.53 points to 1,977.10.

The optimism benefited Asian markets yesterday, with Japan’s Nikkei 225 improving 0.64 percent or 98.34 points to 15,395.16.

Local counters were mixed yesterday. The gainers were led by mining and oil that climbed 0.62 percent or 101.33 points to 16,487.46 but the industrial sector paced the laggards as it dropped 0.29 percent or 29.80 points to 10,310.90.

Investor participation slightly improved as value turnover reached P5.7 billion from P5.23 billion on Monday.

“Investors continue to stay away from the market as the balance tilts toward risk-aversion,” Calaycay said, adding that investors wait at the sidelines for more encouraging leads.

Decliners again dominated advancers, 114 to 65, while 45 stocks did not change.

Most active stocks were in the green, led by LT Group Inc. (+3.79 percent) while and Nickel Asia Corp. (+5.03 percent) rallied due to higher mineral shipment. Top-traded Ayala Corp. (-0.54 percent) and index heavyweight PLDT (-0.13 percent) dragged the main index yesterday.