PHILIPPINE STOCKS extended their gains on Wednesday to track Wall Street’s rise and amid continued bargain hunting.
The bellwether Philippine Stock Exchange index (PSEi) rose by 19.67 points or 0.32% to close at 6,148.31 on Wednesday, while the broader all shares index went up by 13.11 points or 0.4% to 3,266.62.
“PSEi sustained its rally for the seventh consecutive day. We attribute this to the positive sentiment in the US market last night following the UK’s retraction of its proposed fiscal stimulus plan, which could lead to an uptick in global inflation if it pushes through,” AP Securities Inc. Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message on Wednesday.
US stocks closed higher on Tuesday on improved corporate earnings. The Dow Jones Industrial Average rose 337.98 points or 1.12% to 30,523.8; the S&P 500 gained 42.04 points or 1.14% to 3,719.99; and the Nasdaq Composite added 96.60 points or 0.9% to end at 10,772.40.
Monday’s policy reversal from British finance minister Jeremy Hunt also continued to buoy investor sentiment.
Mr. Hunt on Monday thumbed down most parts of the proposed tax cuts announced by his predecessor, saying the measures would help the government raise around 32 billion pounds ($36.2 billion) a year.
Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message that last-minute bargain hunting and net foreign buying lifted the market despite being in the red for most of the day amid a lack of catalysts.
Net foreign buying stood at P119.99 million on Wednesday, down from the P752.76 million in net purchases recorded in the previous session.
“Philippine shares extended their stay in the green as bargain hunting continued ahead of the third-quarter earnings reports,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“Recession fears and aggressive central banks have dragged US markets to their lows, but the solid run to earnings season stateside may signal that the economy is currently on better footing than feared,” Mr. Limlingan added.
The majority of the sectoral indices closed higher on Wednesday. Services rose by 23.42 points or 1.49% to 1,586.95; industrials went up by 79.79 points or 0.91% to 8,834.38; holding firms gained 15.24 points or 0.25% to end at 5,907.06; and mining and oil climbed by 10.14 points or 0.09% to 10,763.22.
Meanwhile, property went down by 14.69 points or 0.54% to 2,691.58 and financials declined by 2.48 points or 0.16% to 1,541.53.
Value turnover dropped to P4.15 billion on Wednesday with 379.72 million shares changing hands from the P4.82 billion with 351.70 million issues traded on Tuesday.
Advancers outnumbered decliners, 94 versus 87, while 44 names closed unchanged.
AP Securities’ Mr. Temporal placed the PSEi’s support at 5,700 and resistance at 6,200. — A.E.O. Jose