PSE index up a bit; market still in consolidation

The Philippine Stock Exchange index made slim gains Wednesday, tracking the movement overnight on Wall Street, but the market in general remains in a consolidation mood from recent gains. Investors, however, were disappointed over the performance of newly listed, Gokongwei-led Cebu Air Inc. “Investors were disappointed. They were expecting that the share price of Cebu Air would reach P140," said trader Justino Calaycay Jr. of Accord Capital Equities Corp. Shares of Cebu Air, listed as “CEB" on the PSE, fell by 1.5 percent to P131 per share Wednesday from P133 apiece Tuesday, hounded by profit taking. The PSEi gained 5.54 points or 0.13 percent to finish at 4,285.07, according to the PSE’s online market information as of 12:10 p.m. More than 2.542 billion shares valued at P5.506 billion were traded. Decliners led advancers 73 to 68, and 39 stocks remained unchanged. The PSEi gained as the Dow Jones Industrial Average closed up 0.1 percent at 11,169.46 overnight, Calaycay said. According to him, the market will continue to consolidate ahead corporate reports for the third quarter. The market might peak again after it pauses for a long weekend, with markets closed for the Nov.1 All Saints’ Day break Monday, Calaycay said. “For now, investors are cashing in on gains as they need to stay liquid over the long weekend," he said. Investors don’t want to be locked in a position “wherein you can’t unload yourself," he added. Support level is at 4,250 with resistance at 4,300, Calaycay said. — Jesse Edep/VS, GMANews.TV