PSEi inches up despite US equities' decline

Gloomy sentiment in Wall Street following the decline in financial shares as a result of tighter disclosure rules, failed to weigh overall sentiment Thursday. Some locals found bargains in large caps, despite heavy selling in select stocks. The PSEi ended 21 points up at 2,760.62 (+0.77% day-on-day) led by holdings (+2.2%) & mining (+1.24%). Gaining most were: TEL (+P25 at P2,590); ALI (+P0.25 at P10.25); AC (+P10 at P312.50); BDO (+P1.50 at P48); PCOR (+P0.40 at P6); FPH (+P1.50 at P40); & AT (+P0.75 at P14.50). Meanwhile, MER (-P2.50 at P67.50); MBT (-P0.50 at P36); & MEG (-P0.04 at P2.06) lost ground. Turnover was moderate at P2.9bn, as gainers outnumbered losers, 50-44.

Local equities might re-test 2,780-2,800 Friday, although skeptics might still check if there might be surprise sell-offs during intra-day rallies. Commodity- & mining-related shares might get the limelight, following gold prices' $10/oz. overnight rally and with crude futures throttling above $123/barrel in Nymex. Monitor volume build-up and check for solid positioning among foreign players. Following regional markets' volatility, it might be best to trade a range & select stocks with good tradability. Immediate support is 2,750, resistance at 2,800-2,820.