By Arra B. Francia, Reporter
THE MAIN INDEX climbed past 7,500 on Wednesday to finish at a peak in 28 trading sessions as foreign buying returned.
The Philippine Stock Exchange index (PSEi) rallied to as high as 7,620.39 in midday trading, before paring down gains to 66.98 points or 0.89% to finish at 7,514, the benchmark’s highest point since June 14’s 7,529.54 finish. The all-shares index went up 30.30 points or 0.67% to 4,535.53.
“A net foreign buying figure of P246.3M led the index to skyrocket by as much as 173 points to break above 7,600 for its intraday high. Profit taking at the close however, erased more than half of the PSEi’s gains as it dropped 100 points to end at 7,514,” Papa Securities Corp. Trader Gabriel Jose F. Perez said in an e-mail.
Timson Securities, Inc. Trader and Marketing Head Mark Levinson Koa also noted that the increase was due to inflows from foreign investors, saying the net foreign buying amount of more than P200 million was “pretty much in existent for the past few months.”
Wednesday ended with P246.30-million net buying that compared to Tuesday’s P47.96-million net sales.
In addition, Mr. Koa attributed the PSEi’s positive performance to the anticipation of good second-quarter earnings.
“Almost abruptly, investors’ sentiment reversed to positive today…,” RCBC Securities, Inc said in a note prepared by research analyst John Paolo D. Ayson.
“The Philippine market joined other Asian markets in cheering the stimulus measures that China recently announced to support its flagging economy.”
Japan’s Nikkei 225 and TOPIX Index were up 0.46% and 0.38%, respectively, while Hong Kong’s Hang Seng Index went up 0.90%.
On the other hand, the Shanghai SE Composite index and the blue-chip Shanghai-Shenzhen CSI 300 shed 0.04% and 0.11%, respectively.
Back home, four of the six sectors indices gained: financials by 2.37% or 43.49 points to 1,874.67, services by 1.11% or 16.24 points to 1,472.43, holding firms by 1.02% or 74.67 points to 7,350.45 and property by 0.57% or 21.18 points to 3,687.40.
The remaining two counters slumped: mining and oil by 0.74% or 74 points to 9,885.82 and industrials by 0.43% or 46.19 points to 10,604.23.
Turnover accelerated to P6.90 billion after some 1.40 billion issues switched hands, compared to Tuesday’s 2.65 billion shares worth P4.43 billion.
Stocks that gained were nearly double those that lost at 125 to 72, while 46 others ended flat.
The list of Wednesday’s 20 most active stocks showed 16 that gained, including integrated resort and casino operators Melco Resorts and Entertainment (Philippines) Corp. and Bloomberry Resorts Corp. that jumped 11.2% to P7.05 and 10.6% to P11.06, respectively. Ayala Land, Inc. surged 3.58% to P40.50, SM Investments Corp. rose 2.3% to P933, while BDO Unibank, Inc. added 4.65% to P135.