Philippine stocks slightly recovered on Tuesday on the back of
improvements in US fiscal cliff talks, analysts said, noting that gains
earlier in the day were nearly eaten by profit-taking in the afternoon
session.
The benchmark PSEi advanced by 0.23
percent or 12.7 points to 5,636.59 from the 5,623.85 on Monday. It was
on a four-day losing streak since Dec. 12.
But
the broader all-shares index continued to drop, shedding 10.10 points to
3,630.27 points. This was reflected by losers overwhelming winners 115
to 61, with 39 stocks unchanged.
“Optimism and
positive sentiment on signs [of averting the] fiscal cliff in the US
prompted some investors to buy select stocks,” said Astro del Castillo,
managing director at First Grade Finance Inc.
Asian stocks gained on signals that the differences between the
Democrats and the Republicans on how to resolve the looming fiscal cliff
is getting narrower.
Economists had warned that
disagreements on automatic spending cuts and tax increases could send
the US economy off a “fiscal cliff.”
Juan
Rafael Supangco, research head at Angping & Associates Securities,
said “The close reflects early positive trading, but the market is still
showing signs of consolidation.”
The PSEi
opened 60 points up, analysts pointed out, but the gains soon dropped to
32.73 points just before the market took a break at noon.
“It's a tug of war between the buyers and sellers, with sellers winning [as in] the past weeks,” said Del Castillo.
The PSEi is seen trading with the 5,600 to 5,700 band. — VS, GMA News
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