Investors’ hopeful sentiments that the US government shutdown wouldn’t last resulted in a positive influence toward regional markets, driving back the local benchmark index past the 6,300-point mark.
“The US government shutdown became a reality as Republicans and Democrats stuck to their respective position, but Europeans and US stocks appear to have been numbed by earlier anticipation, and eventually rose overnight. Asian markets are poised to extend Monday’s gains,” Jun Calaycay, Accord Capital Equities Corp. analyst, said.
According to Calaycay, all prior gaps brought about by recent concerns—US Federal Reserve tapering and Syrian tensions—have closed as the index breezed past important technical lines.
“Three times in the last four months, the measure dropped to what technicians define as bear territory, but at each time the breach was invalidated by an ensuing rise above the bear line,” he explained.
On Wednesday, Philippine shares began trades with an 80-point jump, extending it to over 100-points to pierce through the 6,300-point line which it continued to hold entering the final hour of the morning session.
Specifically, the Philippine Stock Exchange index (PSEi) gained 2.65 percent, or 164.42 points to 6,362.26.
Over the morning trades, the PSEi climbed back to the 6,300-point level, tipping the 6,330-point resistance at the break.
All the sectoral indices also managed to post significant improvements with majority of them rising above 2 percent.
Holding firms registered the biggest gains, surging by 3.09 percent, or 169.01 points to 5,635.56, followed by financials, which climbed 2.51 percent, or 38.51 points to 1,570.64.
Services, on the other hand, advanced by 2.14 percent, or 42.92 points to end at 2,045.15, while industrial increased by 2.10 percent, or 192.84 points to 9,358.50.
Property went up by 1.52 percent, or 36. 24 points to 2,414.01, while the mining and oil counter gained only 0.89 percent, or 108.20 points toward 12,233.99.
“With the gains held, even widened, through the afternoon session, the PSEi may be seen to establish a fresh trading range between 6,250 and 6,420—restoring a semblance of stability to trades,” Calaycay said.
Some of the most actively traded stocks on Wednesday were Universal Robina Corp., Metropolitan Bank and Trust Co., Ayala Corp., Philippine Long Distance Telephone Co. and Alliance Global Group Inc.
Reversing Monday’s nearly 200-point meltdown, the PSEi gained on Tuesday, albeit slightly, by 0.10 percent, or 6.04 points to 6,197.84, while broader all-shares index went up by 0.14 percent, or 5.26 points to 3,763.49.