By Denise A. Valdez, Senior Reporter
PHILIPPINE SHARES closed flat on Monday as investors were on wait-and-see mode ahead of the release of third quarter gross domestic product (GDP) data and amid post-election developments in the United States (US).
The benchmark Philippine Stock Exchange index (PSEi) inched up 0.16 point or less than 1% to close at 6,685.85, while the broader all shares index climbed 16.40 points or 0.41% to end at 3,961.12.
The index opened the session at 6,665.08 and posted losses throughout the day, hitting an intraday low of 6,619.59. It started to pick up in the last minute of trading to close at its best showing for the session.
“Buyers were mainly on the sidelines, despite the rally in other Asian markets. Investors may be waiting for developments on the status of the global economy as well as the political situation in the US before deciding whether to make a move in the market,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.
Most Asian stocks were recording gains at the PSEi’s close on Monday following the election of Joe Biden as 46th US President over the weekend.
“The market closed marginally higher as investors were cautiously optimistic after the US Presidential election concluded… Despite this, market breadth remained positive as traders speculated on which issues would perform well during the last quarter of the year,” Timson Securities, Inc. Trader Darren T. Pangan said in a text message.
Also a key driver in Monday’s market movement was third-quarter GDP data which the government is scheduled to release on Tuesday. A BusinessWorld poll of 19 economists showed an expected GDP contraction of 9.2%, improving from the downward-revised 16.9% decline in the second quarter.
Most sectoral indices ended Monday’s session in green territory: mining and oil rose 249.70 points or 3.15% to 8,153.71; industrials grew 168.26 points or 1.89% to 9,028.59; property added 37.13 points or 1.16% to 3,232.41; services picked up 5.70 points or 0.37% to 1,517.84; and financials climbed 2.94 points or 0.23% to 1,283.11.
The holding firms sub-index was the only one that recorded a loss, sliding 89.38 points or 1.26% to close at 6,953.35 on Monday.
Value turnover stood at P8.02 billion with 1.71 billion issues switching hands, down from P10.08 billion with 4.08 billion issues in the last session.
Advancers outnumbered decliners, 131 against 83, while 43 names ended unchanged.
Foreign investors returned to selling on Monday, posting net outflows of P394.7 million against the net foreign buying of P453.57 million seen on Friday.
“6,900 may be considered the next resistance level, while 6,400 is where support may be pegged at,” Mr. Pangan said.
“The market may move higher in the coming days as the sentiment improves,” Mr. Mangun added.