THE MAIN INDEX rallied for a third straight session on Wednesday, climbing to the 6,300 level, as investors continued to buy bargains ahead of the Philippine central bank’s policy meeting on Thursday.
The Philippine Stock Exchange index (PSEi) rose by 0.22% or 14.06 points to close at 6,313.11 on Wednesday, while the broader all shares index went up by 0.27% or 9.49 points to end at 3,450.58.
“The local bourse continued with its climb this Wednesday. The market moved sideways for Wednesday’s session wherein bargain hunting prevailed leading to a positive close,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message. “However, many are still cautious ahead of the Bangko Sentral ng Pilipinas’ (BSP) policy meeting.”
A BusinessWorld poll last week showed all 15 analysts surveyed expect the BSP’s Monetary Board to keep its target reverse repurchase rate at a 17-year high of 6.5% for a sixth straight meeting on Thursday.
“Local shares closed slightly above the 6,300 level as bargain hunting continued before the semester’s end,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“This followed the mixed performance of US equities, which were influenced by a 7% jump in Nvidia Corp.,” he added.
The Nasdaq rallied 1.3% on Tuesday, buoyed by strength in Nvidia and other tech mega-caps, while the Dow slipped as retailers weighed and investors waited for crucial inflation data due out this week, Reuters reported.
The Dow Jones Industrial Average fell 299.05 points or 0.76% to 39,112.16; the S&P 500 gained 21.43 points or 0.39% to 5,469.30; and the Nasdaq Composite gained 220.84 points or 1.26% to 17,717.65.
Asian stocks stuttered in choppy trade on Wednesday. MSCI’s broadest index of Asia-Pacific shares outside Japan struggled for direction and was flat at 566.53, not far from the two-year high of 573.38 it hit last week.
At home, majority of sectoral indices closed higher. Services rose by 0.86% or 16.94 points to 1,978.14; industrials climbed by 0.62% or 55.45 points to 8,882.48; property went up by 0.22% or 5.48 points to 2,482.01; and financials increased by 0.15% or 2.90 points to 1,887.38.
Meanwhile, holding firms dropped by 0.64% or 35.37 points to 5,471.63, and mining and oil went down by 0.12% or 10.33 points to 8,534.86.
“Among the index members, Aboitiz Equity Ventures, Inc. was at the top, rising 3.74% to P38.80. Bloomberry Resorts Corp. lost the most, dropping 5.39% to P9.30,” Mr. Plopenio said.
Value turnover rose to P4.96 billion on Wednesday with 323.63 million shares changing hands from the P4.19 billion with 360.42 million issues traded on Tuesday.
Decliners beat advancers, 90 versus 85, while 69 names closed unchanged.
Net foreign buying rose to P84.58 million on Wednesday from P28.94 million on Tuesday. — R.M.D. Ochave with Reuters