The PSEi was lifted by the recovery of large caps such as International Container Terminal Services (+7.62 percent), SM Investments (2.21 percent) and BDO Unibank (+5.47 percent). China Banking Corp., which surged to a record high of P93 per share after its inclusion to the PSEi, slipped 1.08 percent to P92 apiece.
The index finished the session a few points above the bear market threshold of 6,083.69, but a market expert said investors should stay on guard given choppy market conditions.
“This was an after effect of the unruly smash down we saw last Friday,” Juanis Barredo, chief technical analyst at COL Financial Group, told InsiderPH.
He explained the market bounced back amid oversold conditions, and selling pressure from the recent PSE index rebalancing had eased.
Key figures to watch
Barredo plotted early resistance zones from 6,130 to 6,250 with a heavier barrier around 6,400.
“We think a rally to such zones will be met by some selling and could drive a renewed consolidation first,” he said.
Immediate support is pegged at the recent low of 5,863, although this can later be adjusted depending on the strength of the current market reversal.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.