PHILIPPINE STOCKS extended their climb on Tuesday on last-minute bargain-hunting and ahead of the rebalancing of the MSCI.
The bellwether Philippine Stock Exchange index (PSEi) gained 99.31 points or 1.48% to end at 6,780.78 on Tuesday, while the broader all shares index rose by 32.81 points or 0.94% to 3,513.98.
Philstocks Financial, Inc. Research Analyst Claire T. Alviar said that the PSEi went up on last-minute bargain-hunting.
“The effectivity on Dec. 1 of the semi-annual index rebalancing of MSCI also affected the trading session,” Ms. Alviar said.
She said improving investor sentiment also continued to lift the market.
“The market saw an upswing as MSCI rebalancing period comes to a conclusion. Also, China’s reopening bets as health officials try to expedite vaccination efforts have stirred optimism in the Chinese equity market and this reverberated across the Asian region, including the Philippines,” AP Securities, Inc. Equity Research Analyst Carlos Angelo O. Temporal said.
Asian markets climbed on Tuesday after China’s pushed its vaccination efforts amid reopening pressures.
MSCI’s broadest index of Asia-Pacific shares outside Japan posted gains of 1.8%, while Hong Kong’s Hang Seng went up 3.9%.
China will speed up coronavirus disease 2019 (COVID-19) vaccinations for elderly people, health officials said on Tuesday, aiming to overcome a key stumbling block in efforts to ease unpopular “zero-COVID” curbs, Reuters reported.
“The PSEi ended the month strong with the MSCI rebalancing taking effect today. However, the market is trading at overbought conditions and it’s best to lighten up on positions,” Mercantile Securities Corp. Head Trader Jeff Radley C. See said in a Viber message on Tuesday.
Almost all sectoral indices closed higher on Tuesday. Property surged by 103.77 points or 3.57% to 3,007.70; holding firms went up by 107.32 points or 1.67% to 6,497.40; services gained 26.03 points or 1.49% to end at 1,766.97; and financials climbed by 11.24 points or 0.66% to 1,698.66.
Meanwhile, industrials lost 73.37 points or 0.76% to close at 9,487.17 and mining and oil declined by 41.60 points or 0.4% to 10,223.02.
Value turnover rose to P23.47 billion on Tuesday with 2.23 million shares changing hands from the P8.68 billion with 729.87 million issues traded on Monday.
Decliners outnumbered advancers, 103 versus 88, while 42 names closed unchanged.
Philstocks Financial’s Ms. Alviar placed the PSEi’s support at 6,600 and resistance at 6,800, while AP Securities’ Mr. Temporal put immediate support and resistance at 6,380 and 6,880, respectively. Mercantile Securities’ Mr. See pegged support at 6,364-6,525 and resistance at 6,877-7,000. — A.E.O. Jose with Reuters