After a slight correction on Tuesday, Philippine shares made it to positive territory on Wednesday aided by the recovery of US stocks.
On Tuesday, the benchmark index fell from the modest gains it recorded on Monday, because of a hefty fall recorded in Wall Street.
“US stocks fell 179 points overnight [on Tuesday], its worst loss in several months after the latest job market numbers raised questions on whether the Fed’s decision to taper may have been premature. Analysts have expressed still ‘lofty’ valuations of stocks, with marginal benefits presented by stock earnings narrowing against a rising trend in fixed income yields. The Dow Jones Industrial Average [DJIA],” Jun Calaycay, Accord Capital Equities Corp. analyst, said.
On Wednesday, US stocks managed to make an upturn with the DJIA, S&P and Nasdaq trading on the green side as of 5 p.m. (Manila time).
The Philippine Stock Exchange index (PSEi) recovered quickly on Wednesday, rising a bit by 0.38 percent, or 22.56 points to 5,958.12, while the wider all-shares index went up 0.40 percent, or 14.32 points to 3,635.57.
Elizabeth Abadillo of Angping and Associates Securities Inc. said that the market was also driven by “sell on rally.”
Except for the mining and oil counter and services, majority of the sectors inched up slightly.
Industrial went up by 0.96 percent, or 84.81 points to 8,936.58, while financials gained 0.48 percent, or 6.85 points to 1,436.60.
The property counter, on the other hand, gathered an additional 9.44 points, or 0.42 percent to end at 2,273.86, followed by holding firms, which ended a bit higher by 0.24 percent, or 12.70 points to 5,406.32.
Services, however, didn’t manage to end on the green side because of a 0.30-percent decline, or 5.66 points to 1,874.16, while mining and oil shed 0.34 percent, or 45.30 points to 12,172.05.
Dhares traded on Wednesday were valued at P5.8 billion, slightly lower from Tuesday’s. Advancers managed to outnumber decliners, 84 to 63, while 52 issues were unchanged.
Some of the companies that had the most gains were Ayala Corp.,
Universal Robina Corp., Ayala Land Inc., LT Group Inc., Aboitiz Power Corp., Emperador Inc., Globe Telecom Inc., GT Capital Holdings Inc. and DMCI Holdings Inc.
On Tuesday, the PSEi dropped by 0.09 percent, or 5.11 points to 5,935.56, while the all-shares index fell by 0.20 percent, or 7.32 points to 3,621.25.