PSE index extends climb as buying continues
THE MAIN INDEX moved higher on Thursday as investors continued to pick up blue chips following the market’s decline.
The Philippine Stock Exchange index (PSEi) rose by 0.22% or 12.97 points to close at 5,726.99, logging a second straight day of gains. Meanwhile, the broader all shares index slumped by 2.8% or 98.19 points to end at 3,400.68.
“We saw much of the bargain hunting concentrated in blue chips, especially the telcos,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message. “The long wait for the Konektadong Pinoy Act IRR (implementing rules and regulations) was a significant regulatory uncertainty for them, and the selloff during the past few months was likely overdone. Now that the IRR is out, the market can finally price in the potential impact on the telco sector and the recent rally in PLDT Inc., Globe Telecom, Inc., and Converge ICT Solutions, Inc. is likely a result of this repricing.”
He added that Manila Electric Co. and International Container Terminal Services, Inc. were among the top movers as they are emerging as the “most favored” stocks for foreign buying.
“The Philippine market ended slightly higher as buying pressure remained strong, with investors taking advantage of relatively cheap stock prices. The positive momentum was driven by renewed optimism following the release of some corporate earnings,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Most sectoral indices closed higher on Thursday. Services jumped by 2.17% or 51.32 points to 2,406.18; mining and oil went up by 1.61% or 218.81 points to 13,762.97; property rose by 1.02% or 20.72 points to 2,041.34; and industrials climbed by 0.61% or 51.36 points to 8,446.92.
Meanwhile, financials dropped by 1.12% or 21.26 points to 1,861.30 and holding firms fell by 1.10% or 50.02 points to 4,474.72.
Advancers outnumbered decliners, 95 to 82, while 51 names were unchanged.
Value turnover went up to P6.51 billion with 825.45 shares traded on Thursday from the P6 billion with 1.30 billion issues that changed hands on Wednesday.
Net foreign selling increased to P409.21 million from P36.3 million.
Meanwhile, Wall Street’s main indexes were mixed on Wednesday, with the Dow notching a record-high close and the Nasdaq losing ground as investors rotated out of pricey technology stocks while focusing on a likely end to a historic US government shutdown, Reuters reported.
The S&P 500 climbed 0.06% to end the session at 6,850.92 points.
The Nasdaq declined 0.26% to 23,406.46 points, while the Dow Jones Industrial Average rose 0.68% to 48,254.82 points.
The government shutdown has weighed on the economy and created a data gap for both the US Federal Reserve and traders, leaving them reliant on private economic indicators. — Alexandria Grace C. Magno with Reuters
