The Philippine Stock Exchange index (PSEi) maintained its positive gains on Monday as it closed to 7,276.34, or by 28.14 points or 0.38 percent. Analysts said that the local index took its cue from global economic performances especially from the US and China.
Here are three fast facts on PSEi maintaining positive gains on Monday.
1. The PSEi continued to rise as investors start to embrace the new normal.
“I think investors are embracing the new normal,” Business World reported Joylin F. Telagen, equity analyst at I.B. Gimenez Securities, Inc., as saying. She added that the PSEi continued to rise based on the positive US job data and President-elect Trump’s ways to boost the economy.
Nonfarm payrolls in the US increased 156,000 in December. Although below than the 178,000 forecast by the market, Luis A. Limlingan, managing director at Regina Capital Development Corp. said that this was still considered a sustained momentum.
2. The PSEi is still expected to be on the upside for the next few days, according to Summit Securities Inc. President Harry G. Liu.
"The next few days will be a little more on the upside. Everybody's on the sidelines watching cautiously," GMA News reported Liu, as saying.
3. Analysts added that the caution could come from the concerns on the continuous decline in China’s foreign-exchange reserves.
“As for Asia, China’s foreign-exchange reserves fell to their lowest level in nearly six years during December,” Limlingan said. On Saturday, The People’s Republic of China reported a decline by USD 41.1 billion (P2.033 trillion) to USD 3.015 trillion (148.4 trillion).
“With the index nearing its resistance, we might see some profit-taking in the near term at around 7200. But a breakthrough to 7,300 might welcome 7,500,” Telagen said.
All counters ended in the green on Monday, except for holding firms sector which was at a 4.35-point or 0.05 percent decline to 7,396.84. Services sector led the increase as it climbed at 26.62 points or 1.93 percent to 1,404.65
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