PHILIPPINE SHARES rose further on Wednesday as players continued to buy cheap stocks and amid expectations of a US Federal Reserve cut overnight.
The benchmark Philippine Stock Exchange index (PSEi) went up by 0.17% or 10.61 points to close at 5,963.77, while the broader all shares index rose by 0.43% or 15.70 points to end at 3,605.21.
“The local market extended its gains as investors continued with their bargain hunting. Hopes of a rate cut by the Federal Reserve and a solid agreement between the US and China in their meeting this week gave the market a boost… However, gains were eventually trimmed as investors traded cautiously amid lingering concerns primarily the Philippines’ corruption issues and their impact on economic outlook,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.
“The Philippine market ended higher as traders took advantage of the cheaper prices,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
The US Federal Reserve was expected to cut interest rates by a quarter of a percentage point on Wednesday as policymakers steer the US economy based on limited data that has nevertheless kept concerns about the strength of the job market top of mind, Reuters reported.
Economists polled by Reuters were nearly unanimous in expecting the US central bank to reduce its benchmark policy rate to the 3.75%-4% range when its latest two-day meeting concludes.
Mr. Tantiangco and Mr. Limlingan said the peso’s rebound against the dollar also boosted market sentiment. The peso surged by 44 centavos to close at P58.69 per dollar on Wednesday from its new all-time low of P59.13 on Tuesday, Bankers Association of the Philippines data showed.
The local unit opened the trading session weaker at P59.15 and even hit an intraday low of P59.26 per dollar, but managed to recoup its losses in the afternoon session.
Most sectoral indices closed higher on Wednesday. Mining and oil jumped by 3.29% or 402.36 points to 12,633.05; industrials rose by 1.38% or 121.63 points to 8,894.1; holding firms increased by 0.78% or 37.64 points to 4,844.89; and financials went up by 0.55% or 11 points to 1,981.64.
Meanwhile, property went down by 0.77% or 17.06 points to 2,181.48 and services dropped by 0.63% or 14.37 points to 2,268.05.
“LT Group, Inc. was the day’s top index gainer, jumping 5% to P14.70. Ayala Land, Inc. was the worst index performer, dropping 2.66% to P20.15,” Mr. Tantiangco said.
Advancers outnumbered decliners, 110 to 74, while 61 names closed unchanged.
Value turnover jumped to P6.46 billion on Wednesday with 690.95 million shares changing hands from Tuesday’s P4.64 billion with 1.18 billion issues traded.
Net foreign selling went up to P477.97 million from P432.57 million. — Alexandria Grace C. Magno with Reuters
