Index edges up on selective buying

MANILA, Philippines - Local share prices edged higher yesterday on the back of selective buying, analysts said.

The main-share Philippine Stock Exchange index gained 12.38 points or 0.17 percent to close at 7,229.72 with 2.75 billion shares valued at P6.16 billion changing hands.

Investors have become more selective in buying with some foreign investors heading out of the market, dealers said.

Despite the PSEi’s rise, market breadth was negative as decliners edged out advancers 96 to 72 while 50 issues were unchanged.

All counters ended higher with the mining/oil index posting the biggest gains followed by the industrial sector.

Accord Capital Equities Corp.’s Jun Calaycay said he expects volatility to rein in the market with the earnings season about to unwind and the mixed results of corporate earnings in January to September.

“The handful of disappointments , ranging from weaker-than-expected to surprise numbers (on the downwide) has shaken an earlier confidence hinged on strong corporate profits to propel share prices higher,” Calaycay said.

Meanwhile, global shares fell and the oil price slid yesterday after data showed Japan had slipped into recession, raising concerns about global growth.

European shares opened lower. They followed Tokyo’s Nikkei index   which lost three percent, its biggest one-day drop since August on news that the world’s third-largest economy unexpectedly shrank by an annualised 1.6 percent in the third quarter.