PHILIPPINE SHARES rebounded on Wednesday as investors hunted for bargains and gains on Wall Street spilling over to the local market.
The bellwether Philippine Stock Exchange index (PSEi) rose by 0.94% or 56.38 points to close at 6,044.13, while the broader all shares index increased by 0.33% or 12.16 points to end at 3,619.19.
“After four straight days of decline, the local market bounced back this Wednesday as bargain hunters took opportunities,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
“The PSEi corrected higher after US stock markets mostly gained for the second straight day,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
Wall Street’s main indexes ended mixed on Tuesday as gains in Coca-Cola and Apple offset losses in Tesla, while investors parsed Federal Reserve Chair Jerome Powell’s latest comments, Reuters reported.
The US central bank is in no rush to cut its short-term interest rate again given the economy is “strong overall,” with low unemployment and inflation still above the Fed’s 2% target, Mr. Powell said in opening remarks at a Senate Banking Committee hearing.
The S&P 500 climbed 0.03% to end the session at 6,068.50 points.
The Nasdaq declined 0.36% to 19,643.86 points, while the Dow Jones Industrial Average rose 0.28% to 44,593.65 points.
“Philippine shares closed higher as the latest MSCI rebalancing results reflected the latest inflow and outflow from the quarterly review,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Following its February index review, MSCI said Gokongwei-led companies JG Summit Holdings, Inc. and Universal Robina Corp. were removed from the MSCI Philippines Standard Index and were included in the MSCI Philippines Small Cap Index. Food and beverage manufacturer Monde Nissin Corp. was also added to the MSCI Philippines Small Cap Index.
The changes will take effect at the market’s close on Feb. 28.
All sectoral indices posted gains on Wednesday. Holding firms climbed by 1.34% or 67.87 points to 5,115.77; services rose by 0.79% or 15.34 points to 1,947.44; industrials went up by 0.53% or 45.53 points to 8,534.32; financials increased by 0.49% or 11.02 points to 2,254.32; property added 0.43% or 9.73 points to end at 2,252.84; and mining and oil inched up by 0.05% or 4.32 points to 7,430.23.
“Monde Nissin Corp. was the top index gainer, jumping 5.96% to P8.00. Emperador, Inc. was the main index laggard, falling 4.42% to P12.10,” Mr. Tantiangco said.
Value turnover inched up to P5.85 billion on Wednesday with 533.86 million issues traded from the P5.82 billion with 478.95 million shares exchanged on Wednesday.
Decliners beat advancers, 103 versus 74, while 64 names were unchanged.
Net foreign selling went down to P455.51 million on Wednesday from P655.18 million on Tuesday. — R.M.D. Ochave with Reuters
