Bourse extends gains on earnings anticipation

THE MAIN INDEX extended gains on Thursday despite slow trading throughout the session, as investors turned bargain hunters in anticipation of corporate earnings reports.

The Philippine Stock Exchange index (PSEi) improved 15.25 points or 0.19% on Wednesday to close at 7,930.55 — again the highest in nearly a month or since Sept. 17’s 7,932.23 — while the all-shares index inched up 7.24 points or 0.15% to 4,770.93.

“Our index ended positive today due to last-minute buying despite the thin volume and weak US retail sales data released last night. The last-minute buying activity could be a bargain-hunting move among investors as they anticipate more earnings disclosure from index stocks,” Timson Securities, Inc. Trader Jervin S. De Celis said in a text message.

US reported a 0.3% drop in retail sales in September, the first fall in seven months, as consumer spending on cars, building materials and online items slowed.

The report dragged Wall Street down during Wednesday’s trading, with the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite sliding 0.08%, 0.2% and 0.3%, respectively.

Most major Asian bourses followed suit: Japan’s Nikkei 225 and Topix indices by 0.09% and 0.45%, respectively, South Korea’s KOSPI by 0.23%, Singapore’s Straits Times index by 0.41% and China’s Shanghai SE Composite by 0.05%.

On the other hand, Hong Kong’s Hang Seng index gained 0.69% and India’s S&P BSE Sensex index increased by 0.84%.

For Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco, investors abroad helped spur the bourse for the second straight day, with net foreign buying growing 28.55% to P1.08 billion from Wednesday’s P841.28 million.

At the same time he noted the persistently low value turnover at 587.99 million shares worth P5.71 billion from Wednesday’s 715.39 shares worth P5.55 billion.

“Foreign funds… helped today with net foreign inflows amounting to P1.08 billion. Our worry however is the daily value turnover which has been lethargic lately,” Mr. Tantiangco said in a text message.

“So far this week, average value turnover stands at P4.9 billion, lower compared to the year-to-date average of P7.47 billion. This shows that investors are still on a cautious stance, that many are staying on the sidelines waiting for a catalyst, particularly the 3Q company reports.”

Four out of the six sectoral indices gained on Thursday: industrial by 37.03 points or 0.34% to 10,787.09, financials by 12.45 points or 0.67% to 1,848.34, property by 10.59 points or 0.25% to 4,185.98 and services by 1.39 points or 0.09% to 1,525.74.

The remaining two declined: mining and oil by 129.4 points or 1.42% to 8,956.66, and holding firms by 12.77 points or 0.16% to 7,724.01.

More stocks advanced than declined, 93 to 79, while 57 names were unchanged. — Denise A. Valdez