PHILIPPINE share prices on Wednesday closed higher as inventors picked up bargains following a two-day slump.
At the Philippine Stock Exchange, the composite index added 12.13 points, or 0.28 percent to 4,315.21, while the broader all-shares index gained 12.63 points, or 0.42 percent to 3,041.48.
A total of 6.87 billion stocks worth P5.46 billion changed hands. Advancers beat decliners, 78 to 75, while 28 stocks were unchanged.
“The Philippine main composite index had a roller coaster ride before closing modestly in the green,” said AB Capital Securities Inc.
“The PSEi soared by as much as 28.38 points before cautious traders decided to take profits,” it added.
The August inflation data, which rose at a slower pace of 4.7 percent from 5.1 percent in July, also provided some relief for market players, who have been worried about a slowing local economy, the brokerage said.
All sub-indices finished in the green except for the mining and oil index, which fell by 1,002.46 points, or 4.01 because of profit-taking in Lepanto Consolidated Mining Co.
The local market remains indecisive, trading between 4,300 and 4,400, and it will need a new catalyst to help the PSEi snap out of the tight range, analysts said.
“Domestic fundamentals are still strong but there are just too many external distractions. In fact, such external noise has begun to take its toll on the local economy,” AB Capital said.
“The deterioration coupled with the relatively high valuation could pose some downside concern in the medium term,” it added.
Overnight, the Dow Jones Industrial Average fell 100.96 points, or 0.90 percent to 11,139.30 on concerns over Europe’s debt woes, fueling fears that the global economy could be headed for a recession.
Asian currencies also bounced on Wednesday as bargain hunters moved in to take advantage of recent falls.
At the Philippine Dealing System, the peso gained 3.5 centavos to close at 42.250 against the US dollar from 42.285 the previous trading day.
The local unit traded at a high of 42.330 and to a low of 42.250, averaging at 42.280 at the end of the intra-day session.
Total trading eased to $635.570 million from $740.28 million the day before.
The dollar-peso currency pair is expected to trade within the 42 to 42.70 range today, with bias leaning to the upside as the country’s gross international reserves reached $75.6 billion at end-August.
With report from Lailany P. Gomez
