Index inches up in thin trading

MANILA, Philippines - The local bourse managed to post a slight gain in thin trading yesterday.

The Philippine Stock Exchange index (PSEi) inched up 0.04 percent or 2.91 points to settle at 7,028.35, while the broader all shares index added 0.17 percent or 7.40 points to 4,391.88.

A total of 4.54 billion shares worth P7.45 billion changed hands, down from 5.88 billion stocks worth P10.23 billion on Friday as investors took a step back given already high valuations.

“Absent developments and events that point to the contrary, the bulls continue to feast on what a growing number considers over-valued and technically overbought stocks,” said Justino B. Calaycay Jr., analyst at Accord Capital Equities Inc.

The market followed the trend of small gains and thin trading in regional markets with Japan and China closed for the holidays.

Freya Natividad, investment analyst at brokerage firm 2Trade-Asia.com, said the local market traded “sideways with an upward bias as most investors took direction from overseas markets.”

Most counters were in the green, led by financial companies that climbed 0.81 percent or 14.73 points to 1,822.63 due to strong first quarter earnings of banks.

Mining and oil continued to be a drag, falling 0.68 percent or 140.49 points to 20,567.74 on weak commodity prices.

Advancers narrowly outpaced decliners, 83 to 76, while 44 shares did not change.