Shares climb on window dressing as month ends

By Arra B. Francia, Senior Reporter

LOCAL SHARES rose on Thursday on window dressing ahead of the last trading day of August.

The bellwether Philippine Stock Exchange index (PSEi) climbed 0.57% or 45.31 points to close at 7,892.81 yesterday, while the broader all-shares index likewise added 0.35% or 16.96 points to finish Thursday’s session at 4,765.77.

“Investors bought ahead of the window dressing period as tomorrow marked the last trading day for August,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message.

“In addition, outside the region stocks gained as the energy sector got a boost from higher oil prices but the optimism was kept in check as a key part of the US yield curve kept inverting further, exacerbating fears of a recession.”

Yield curve inversions historically precede a recession by two to three years, as the public becomes more wary of how short-term investments perform, thereby favoring long-term bonds.

International markets rallied overnight, with the Dow Jones Industrial Average up 1% or 258.20 points to 26,036.10. The S&P 500 index went up 0.65% or 18.78 points to 2,887.94, while the Nasdaq Composite index added 0.38% or 29.94 points to 7,856.88.

The PSEi also defied the muted performance of Asian markets due to lingering trade concerns. The US is scheduled to impose additional tariffs on $300 billion worth of Chinese imports this Sunday, Sept. 1, in response to China’s tariff increase on $75 billion worth of US goods.

Meanwhile, Papa Securities Corp. Sales Associate Gabriel Jose F. Perez noted that the PSEi moved flat on a lack of immediate catalysts.

“Catalysts would then be any potential major US market movements, as well as possible developments from President [Rodrigo R.] Duterte’s visit to China — especially regarding POGOs (Philippine Offshore Gaming Operators),” Mr. Perez said in an e-mail.

Five sectoral indices moved to positive territory, led by industrials which jumped 1.12% or 123.07 points to 11,066.87. Mining and oil went up 1.06% or 87.37 points to 8,266.53; holding firms advanced 0.84% or 65.34 points to 7,842.85; financials gained 0.53% or 9.57 points to 1,809.89; while services firmed up 0.14% or 2.27 points to 1,575.43.

Property was the lone loser for the day as it dropped 0.14% or 5.89 points to close the session at 3,990.86.

Some 6.58 billion issues valued at P8.44 billion switched hands, slightly higher than Wednesday’s P8.36 billion.

Foreign investors were net sellers for the seventh consecutive day at P419.63 million, against the previous session’s P557.83 million.

Advancers outpaced decliners, 109 to 87, while 47 names remained flat.