Share prices on the Philippine Stock Exchange rose by almost a percent on Wednesday as investors positioned themselves, as in other Asian markets, following Japan announcing a $266 billion stimulus package while awaiting US Federal Open Market Committee meeting due later in the day.
Tokyo’s Nikkei ended the morning up 1.4 percent while Hong Kong and Shanghai and Wellington added 0.2 percent each, and Taipei added 0.4 percent and Sydney was slightly up. Seoul and Singapore, however, dipped 0.1 percent each.
In the Philippines, the benchmark Philippine Stock Exchange Index (PSEi) rose by 0.95 percent or 75.94 points to end the trading day at 8,100.48, while the broader All Shares index increased by 0.94 percent or 44.84 points to settle at 4, 822.70.
Turnover reached P8.6 billion, with losers marginally outnumbering winners, 100 to 93, while 48 issues were unmoved.
All sub-indices ended in the positive territory, except for the mining and oil sector, which slightly dipped by 0.19 percent, while the holding and financial firms enjoyed the highest gains, with 1.16 percent and 1.01 percent, respectively
Jonathan Latuja, equity research analyst at Unicapital Securities Inc. in Manila, attributed the positive performance of the Philippine bourse to the optimism among investors that the central banks would keep their dovish positions in order to support their respective economies, which would ultimately positively impact emerging markets, including the Philippines.
“The stock market was forced up today [Wednesday] as investors tried to position ahead of the FOMC meeting announcement [evening in Manila]and Japan’s decision [on stimulus package]on Friday,” he said.
Many, he added, are expecting that central banks will be dovish in order to support their respective economies.”