Shares climb inches as bargain hunting continues

SHARES rose Tuesday on bargain-hunting amid a lack of fresh leads and ahead of the release of companies’ second-quarter results.

The Philippine Stock Exchange (PSEi) benchmark index rose 17.46 points, or 0.27%, to close at 6,286.24 on Tuesday, while the broader all-shares index rose 11.30 points, or 0.33%, to 3,381 .36 rose.

“The local bourse closed in the green, up 17.46 points (+0.27%) to 6,286.24 as investors continue to hunt for bargains after last week’s decline. However, throughout the day, the market moves sideways due to a lack of new leads,” said Claire T. Alviar, research analyst at Philstocks Financial, Inc., in a Viber message.

Ms Alviar said investors remained on the sidelines, according to value turnover recorded on Tuesday.

Value turnover fell to P3.793 billion on Tuesday, with 1.07 billion shares changing hands from P4.24 billion with 521.89 million issues the previous trading day.

“The Philippine main index closed marginally higher, but volume remained light as investors remain cautious ahead of earnings season,” said Marc Kebinson L. Lood, head of online trading at Timson Securities, Inc., in a Viber message.

Mr Lood said the market was also awaiting the US Federal Reserve meeting on July 26-27, where interest rates are expected to be raised further as consumer inflation in the world’s largest economy surged another 40- year high reached.

Some market participants are even pricing in a 100 basis point (bp) Fed rate hike next week, larger than the 75 bp hike in June.

“The local market could still move sideways for the rest of the week as there is no market-moving news yet, but investors will be watching the President’s first SONA (State of the Nation Address) closely [Ferdinand “Bongbong” R. Marcos, Jr.]which could set a new trend direction for our index,” he added.

Mr. Marcos will deliver his fifirst SONA on July 25, Monday.

The majority of industry indices ended in the green on Tuesday financials, which fell 23.44 points, or 1.55%, to 1,480.89.

Meanwhile, mining and oil rose 272.18 points, or 2.55%, to 10,932.83; Services rose 22.38 points, or 1.38%, to 1,640.04; Holdings rose 60.44 points, or 1.03%, to 5,893.02; Industrials rose 35.95 points, or 0.38%, to 9,411.27; and real estate rose 7.34 points, or 0.25%, to end Tuesday’s session at 2,859.82.

Promoters outnumbered relegators, 99 versus 77, while 51 names closed unchanged.

Overseas net sales fell to P227.51 million on Tuesday from P333.39 million the previous trading day.

Mr. Lood put PSEi’s support at 5,900 and resistance at 6,700, while Ms. Alviar of Philstocks Financial placed support in the 6,000-6,150 area and resistance at 6,400. — Justine Irish DP. tabel