PHL shares close higher in 6th consecutive rally on foreign buying

Share prices on the Philippine Stock Exchange (PSE) posted gains for the sixth consecutive trading day on Tuesday, returning to the 7,300 level as investors bought into select stocks after the market held well at the resistance point.

The market was well-supported by foreign funds that targeted select blue chips.

"Inflows from foreign funds position on selected counters like PLDT, Globe, SM Prime," said Manny Cruz, chief market strategist at Asiasec Equities Inc.

"Well, they sold a lot last year, and they are anticipating strong GDP numbers this year that would be heightened by the infrastructure development of the government," Cruz added.

The main PSEi surged by 88.00 points or 1.21 percent to close at 7,363.34. The All Shares went up by 50.98 points or 1.17 percent at 4,417.13.

"Investors started to buy up higher. We've been hesitating below 7,300," Miko A. Sayo, trader at Angping & Associates Securities Inc., said.

The market was expecting a technical correction, – which obviously did not materialize, and prompted investors to start placing buy orders. "When it didn't consolidate, they started to buy back. Some people who sold too early started to buy back higher," Sayo said.

The market bucked a regional decline on Tuesday, with Asian stocks reported as being "shaky."

"Asian stock markets were on the back foot on Tuesday as risk appetite evaporated overnight after the year's strong start, with equities retreating, oil markets roiled by a supply surge and the pound sliding on renewed concerns about a 'hard' Brexit," Reuters reported.

More than 5.614 billion shares, valued at P8.947 billion, changed hands on the Philippine Stock Exchange. Advancers led decliners, 129 to 74, and 41 issues traded unchanged. — VS, GMA News