Local shares continued to show strength in the trading week of May 19 to 23, as the Philippine Stock Exchange index (PSEi) managed to close above 6,400 points for three of five days.
However, the PSEi performance from May 19 to 23 was weaker than the shortened trading week of May 13 to 16, where the index closed above 6,500 points twice.
On the last trading of last week, or May 23 (Friday), the PSEi went up by 1.71 percent to 6,413.10 while the All Shares index went up by 1.04 percent to 3,746.79. Almost all sectors went up except for Mining and Oil, which slipped by 0.65 percent.
Regina Capital Development Corp. head of sales Luis Limlingan said investors hunted for bargains, following the dip of the PSEi on May 22 (Thursday) by 1.10 percent to 6,305.37 while the All Shares index slipped by 0.80 percent to 3,708.18.
The PSEi’s close of 6,305.37 on May 22 is the lowest for the stock index for the month of May.
“The local bourse closed higher as investors engaged in bargain hunting following recent declines, focusing on prospects for reform and improved market operations,” Regina Capital Development Corp. head of sales Luis Limlingan said.
As for PSEi’s drop on May 22, he said that investor sentiment was also affected by the local political scene, and the call of President Ferdinand Marcos Jr. for a Cabinet revamp.
“Investor caution was further heightened by domestic political uncertainty after President (Marcos Jr.’s call for the courtesy resignation of his Cabinet secretaries, seen by some as a possible shift in policy direction,” Limlingan said.
Philstocks Financial Inc. research manager Japhet Tantiangco echoed this view.
“Investors also dealt with President Marcos Jr.’s move to call for the resignation of his Cabinet secretaries,” Tantiangco said.
So far, the PSEi has managed to stay above 6,300 points and but still struggled to get past 6,600 points as the highest close this month was at 6,566.82 on the 13th.
For the next trading days, the PSEi is seen testing the 6,500 points, seen as the next resistance level.
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