Selective buying of issues of some blue-chip companies on Wednesday drove the local Philippine Stock Exchange index (PSEi) back to the 6,800 psychological mark ahead of today’s holiday break in observance of the country’s Independence Day.
Lexter Azurin, research analyst at Unicapital Securities Inc. said in a text message that the market rose in mid-week trading because of the bargain hunting that occurred throughout the session.
“The rise today is more from selective buying [of blue chip firms], mainly foreign buying,” Azurin further said.
Specifically, BDO Unibank Inc. (BDO) went up by 1.45 percent to P92.65, Ayala Land Inc. (ALI), rose by 3.10 percent to P31.55, and SM Investments Corp. (SM), was up 0.90 percent to P782.
“ALI, SM, BDO accounted for 20 points of the rise [of the main index],” Azurin specified.
On Wednesday, the PSEi recovered 31.20 points, or 0.46 percent to end at 6,809.18, while the wider all shares index added 5.39 points, or 0.13 percent to close at 4,076.01.
Despite the gains, “Investors in general stayed on the sidelines as we await for further significant news, given that our market will be closed tomorrow for Holiday,” Azurin said.
Most business sectors in the index also ended in green, with property having the largest gain, rising by 32.28 points, or 1.23 percent to 2,655.86, followed by financials, which went up by 9.76 points, or 0.61 percent to 1,600.87. Holding firms increased by 27.68 points, or 0.45 percent to 6,215.90, while industrials gained 15.03 points, or 0.14 percent to 10,391.92.
Services, however, erased 13.25 points, or 0.65 percent to close at 2,017.89, while the mining and oil sector shed 56.42 points, or 0.36 percent to 15,447.24.
Overall trading was active with 1.3 billion shares worth P7.6 billion changing hands. Decliners slightly beat advancers, 98 to 84, while 42 were unchanged.
Some of the other most actively traded shares were Metropolitan Bank and Co., up 0.53 percent to P85.85, Alliance Global Group Inc., down 1.34 percent to P29.45, Energy Development Corp., up 2.18 percent to P6.55, and Universal Robina Corp., up by 0.06 percent to P155.