Shares ‘rest’ in the red after rally

Traders optimistic about third-quarter corporate results barely managed to pull the bourse from the red territory on Tuesday as the peso weakened.

The benchmark Philippine Stock Exchange Index (PSEi) ended flat as it added 0.09 percent, or 6.53 points, to close at 7,413.16.

Meanwhile, the broader All Shares Index inched up by 0.13 percent, or 5.21 points, to 4,085.5.

A total of 916.59 million shares worth P5.31 billion changed hands, stock exchange data showed. The value turnover was higher than the year-to-date average of P5.2 billion, according to Philstocks Financial Inc.

Philstocks senior analyst Japhet Tantiangco explained that while traders were anticipating “good” third-quarter earnings reports, the market’s gains were tempered by the local currency’s weakness against the US dollar. The peso closed at 57.88 against the greenback on Tuesday from 57.59 previously.

At the same time, Jayniel Carl Manuel, equities trader at Seedbox Securities Inc., said the market was likely in a “resting phase” after its recent rally to 7,500.

“Investors are likely watching closely to see if this resting phase will lead to further upward momentum,” Manuel said.

Sy family-led BDO Unibank Inc. was the top-traded stock as it shed 0.61 percent to P164 each.

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It was followed by Ayala Land Inc., down 0.56 percent to P35.80; Bank of the Philippine Islands, up 0.35 percent to P143; Metropolitan Bank and Trust Co., down 1.86 percent to P79; and International Container Terminal Services Inc., up 2.20 percent to P417.40.

Other actively traded stocks were Monde Nissin Corp., up 3.94 percent to P11.08; Jollibee Foods Corp., up 0.94 percent to P278.60; Universal Robina Corp., up 1.66 percent to P101; SM Investments Corp., down 0.62 percent to P956; and Globe Telecom Inc., down 0.99 percent to P2,390 per share.

Gainers edged out losers, 99 to 94, while 55 companies closed unchanged, stock exchange data showed.