PSEi up 1.44% as fund managers go on window dressing

Philippine share prices on Tuesday started the last trading week of the year in the green as fund managers go on window dressing ahead of the four-day, New Year weekend.

Financial markets were closed for a special non-working holiday on Monday.

The benchmark PSEi gained 94.53 points or 1.44 percent to close at 6,658.20. The broader All Shares advanced by 48.10 points or 1.20 percent to 4,070.60.

“The PSEi started the last week of the year with window dressing, without any leads from the US which was closed the previous night due to a holiday.  Luis A. Limlingan, managing director at Regina Capital Development Corp., said in a text message.

"Investors individually cherry picked issues for their funds,” he added.

According to Investopedia, window dressing is a strategy used by mutual fund and other portfolio managers near the year or quarter end to improve the appearance of a fund’s performance before presenting it to clients or shareholders.

"To window dress, the fund manager sells stocks with large losses and purchases high-flying stocks near the end of the quarter. These securities are then reported as part of the fund's holdings," it said.

“Asian stocks were little changed on Tuesday, in thin trade, and with little to guide them as most major markets were closed on Monday for Christmas holidays,” Reuters reported.

More than 491.507 million shares, valued at P3.283 billion, changed hands. Winners led losers, 90 to 78, and 57 issues were unchanged.

Financial markets are in for a four-day trading week ahead of the four-day, New Year weekend. Markets will be closed starting Friday, December 30. Trading will resume on Tuesday, January 3, 2017.

Citing the benefits of a longer weekend, President Rodrigo Duterte declared Monday, January 2, a special non-working holiday, saying it “promotes domestic tourism and enables employers to plan their work schedules effectively and efficiently, resulting in improved productivity.” — VS, GMA News