The local stock market posted a small gain amid quarter-end window dressing.
The main index gained 18.77 points or 0.27 percent to close at 6,952.88 as the Industrial and Mining and Oil counters leading the advance while Banks and Property firms retreated.
Volume continued to be strong at 1.54 billion shares worth P9.88 billion as gainers beat losers 115 to 78 with 51 unchanged.
“Philippine shares closed the quarter in the green following the sentiment in the US after pending home sales data showed it rebounded faster to 8.1 percent versus the consensus forecast of 1.3 percent.”
He added that, “Back home, the August unemployment rate, bank lending data, and PMI will be out soon giving cues to the possible direction of the index come October.”
Philstocks Financial Research and Engagement Officer Claire Alviar said “The local bourse gained as investors anticipate easing of restrictions starting October 1 despite a higher unemployment rate in August.”
She noted that, “The market awaits the decision of the government for the next quarantine measures that should be announced today. Given that the Covid-19 cases show signs of slowing down, investors anticipate laxer quarantine measures this October.”
Alviar said that, “In addition, month-end window dressing also pushed the market to end in the green.”
AAA Equities Head of Research Chris Mangun said “The PSEi ended slightly higher as the market continues to consolidate at current levels. Substantial gains in mid-cap blue chips mainly CNVRG, TEL, URC, JFC (Telco and Food Manufacturers) offset losses in large-cap industry heavyweights SMPH, BDO, ICT.”
“The main index continues to hover right below the 7,000 key level, which is the inflection point for its movement in the long-term. Investors are deciding to be more optimistic which is resulting in higher valuations despite the sluggish pace of recovery in the fundamentals of most companies,” Mangun added.
He pointed out that, “Investors are also counting on a much stronger fourth quarter, which also gives a lot of consideration to the beginning of the campaign season for the 2022 national elections.”