PSE SIZZLES; INDEX SOARS

The Philippine Stock Exchange (PSE) today sizzled with local investors filling in the void from foreign investors getting out of their positions to push the index to 6,814 points, up a hefty 202.14 points, or 3.06 percent in what is seen as a harbinger of good tidings for the stock market that was battered last week.

Market analysts have been harping on the lows that the PSE index had suffered and were looking at buying opportunities as a result, especially with the forthcoming Chinese Lunar Year that is seen as a catalyst insofar as the trading is concerned.

Even with the uncertainty over the COVID-19 vaccine, local investors have been pumping in increasing amounts of investments that last, month alone gamed the 2020 daily average trading volume of P7.75 million to P11.04 billion for the January period.

Value turnover amounted to P9.983 billion with 130 gainers, 82 losers and 45 shares unchanged, as all sub sectors turned in respectable rises bannered by the 4.57 percent surge in properties and the mining and oil rise of 3.05 percent.

The financials rose by 3.15 percent, industrials, 2.14 percent, holding firms, 183 percent and the services 3.12 percent.

Market punters see optimistic trading performance for the PSE with the upcoming Chinese Lunar New Year on the 12th of this month, where, usually Chinoy investors pump in money in the stock market.

Second liners again dominated the top 20 most active stocks listing where only two of the traded stocks posted losses: Ayala Corp., which lost P8.50 to P761.50, and market darling MerryMart, which dropped by 24 centavos to P6.36.

Again, second liners that figured in the most active stocks, Apollo Global, which rose by P0.0203 to P0.217 with a P1 billion turnover and Abacore, which rose to P1.36 for a 45-centavo gain, or a price freeze surge of 50 percent, on trades of P572 million; while Dito CME went up by 50 centavos to P12.50 with trades of P495 million.

Market bellwether SM Investments went up by P20 to P1,005, even with foreign selling of P178 million, indicating the continued entry of local investors into the market that was bolstered by the rise of food giant, Jollibee Foods by P1.10 - even with foreign selling of P60 million.

Net foreign selling amounted to P1.1 billion on foreign buying of P2.16 billion and foreign selling of 3,287 billion. Also BDO Unibank posted a P3.30 rise to P104 even with foreign selling of P101 billion.

Local investors have been investing in the stock market due to the low yields provided by other investment products such as bonds, treasury bills, bank time deposits and real estate. In fact, market analysts believe that the PSE index may climb up beyond 8,000 points due to the low market pricing of many listed stocks based on earnings multiples.

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