The local bourse climbed on Thursday amid last-minute buying and a hawkish US Federal Reserve.
The bellwether Philippine Stock Exchange index (PSEi)inched up 0.58% or 41.57 points to 7,141.25. The broader all-shares index also climbed 0.46% or 20.12 points to 4,632.40.
“Our index ended positive due to last-minute buying spree as investors try to retest the 7,200 level despite the absence of fresh local catalysts to lure back foreign investors in our stock market,” Jervin S. de Celis, trader at Timson Securities, Inc., said in a mobile phone message.
Mr. De Celis said yesterday’s movement was expected as the index stocks were heavily sold down last week following a triple-digit drop by the Dow Jones for two straight days. As such, the current factors do not point toward an actual recovery for the market.
“I guess this is more of a rebound but not convincing enough to assume that we’re in a reversal trend since most of the news coming from the west are still supportive or indicative of future strength for the US dollar and a hawkish stance from the US Fed which can further the foreign selling in our market,” Mr. De Celis added.
Regina Capital Development Corp. Managing Director Luis A. Limlingan said the “slightly hawkish” minutes of the recent Federal Open Market Committee (FOMC) meeting also pushed the local index upward.
“FOMC minutes from the September meeting showed that Fed officials debated how high to push interest rates, with a majority appearing to favor an eventual and temporary move above the level they deem neutral for the economy in the long run. The committee was otherwise in broad agreement over continuing on the current, gradual path of rate increases,” Mr. Limlingan said in a mobile message.
“The major indexes traded in a wide range before the minutes were released as investors grappled with a flood of corporate earnings and weakness in the housing market,” Mr. Limlingan added, also noting easing crude prices and the temporary halt on trade tensions between the US and China as positive factors.
Back home, all counters ended in the green. Mining and oil saw the biggest gains, soaring 3.04% or 278.25 points to 9,406.86; holding firms rose 1.22% or 83.16 points to 6,883.73; services climbed 0.31% or 4.63 points to 1,489.19; financials went up 0.28% or 4.56 points to 1,605.77; property increased 0.24% or 8.54 points to 3,556.40; and industrials inched up 0.05% or 5.93 points to 10,837.66.
Advancers outpaced losers, 92 to 85, while 47 issues were unchanged.
Value turnover totaled P4.02 billion as 457.65 million shares were traded, lower than the previous day’s P5.74 billion worth.
Foreigners continued to dump shares although selling eased to a net P149.63 million from the P633.66-million net outflow logged on Wednesday. — Janina C. Lim

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