By Arra B. Francia
Reporter
SHARES recovered on Wednesday due to window dressing and the return of foreign investors into the local market after two months.
The bellwether Philippine Stock Exchange index (PSEi) jumped 1.77% or 124.23 points to 7,140.29, bouncing back from the sell-off in the previous session. The broader all-shares index likewise gained 1.4% or 60.66 points to 4,370.46.
“The window dressing and net foreign buying today lifted our index to 7,140.29. This could be due to the easing trade tension between the US and China since both countries are set to hold talks about trade which may have buoyed market sentiment today,” Timson Securities, Inc. trader Jervin S. de Celis said in a mobile message on Wednesday.
Foreign investors turned buyers for the first time since Aug. 30, recording net purchases of P228.75 million versus net foreign outflows of P939.97 million on Tuesday.
Mr. De Celis added that market sentiment may have also been lifted by the Bangko Sentral ng Pilipinas’ (BSP) estimate that inflation has peaked in the third quarter.
“I guess, the BSP’s estimate for inflation which, as they said, may have peaked at 3Q 2018 could also help in taming market sentiment before the figure is released next week,” he explained.
Regina Capital Development Corp. Managing Director Luis A. Limlingan, meanwhile, noted that investors were looking forward to the release of economic data next week.
“Locally, fund managers were looking ahead of the long weekend as well in anticipation of more earnings to be released next week, the inflation data on Nov. 6, and GDP (gross domestic product) on Nov. 8,” Mr. Limlingan said in a mobile message.
International indices also posted gains overnight, with the Dow Jones Industrial Average rising 1.77% or 431.72 points to 24,874.64. The S&P 500 index went up 1.57% or 41.38 points to 2,682.63, while the Nasdaq Composite index also climbed 1.58% or 111.36 points to 7,161.65.
Most Asian indices also rallied due to positive sentiments on the trade war between the US and China, as the leaders of both countries are expected to meet at the G20 Summit this November.
Back home, all sectoral indices moved to positive territory, led by industrials which soared 2.16% or 225.23 points to 10,648.79. Holding firms advanced 1.86% or 128.43 points to 7,003.53; property rose 1.78% or 61.45 points to 3,495.49; financials firmed up 0.94% or 15.10 points to 1,607.90; services ended 0.79% or 11.60 points higher at 1,462.55; while mining and oil added 0.4% or 38.43 points to 9,572.05.
Turnover improved to P7.26 billion after some 604.84 million issues switched hands, versus the previous session’s P3.95 billion.
Advancers outpaced decliners, 100 to 84, while 45 names remained unchanged.

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