A late wave of buying saved the market from ending in negative territory for a second day on Wednesday as investors remained cautious ahead of the Bangko Sentral ng Pilipinas’ (BSP) rate-setting meeting today.
The Philippine Stock Exchange index (PSEi) clawed back some of its losses on Tuesday, advancing 12.16 points or 0.19 percent to 6,348.50, while the broader all shares index rose 4.58 points or 0.16 percent to 3,883.82.
Local investors kept to the sidelines and mostly ignored the overnight rise in overseas markets as they await clearer policy signals from the central bank.
“After days of being dragged lower by concerns over a slowing Chinese economy, the crisis in Ukraine and mixed US data, investors turned to the same issues and found optimism, sending market indexes on both sides of the Atlantic to a sharp, more than one-percent rebound,” said Jun Calaycay, analyst at Accord Capital Equities Corp.
“This failed to rub off on the local market as investors held back on trades ahead of the BSP’s rate-setting meeting. But a late surge of buying saved the day, pushing the measure 12 points higher and continuing the market’s alternating gains and losses,” he added.
Except for financials and industrials, which both stayed in the red, the rest of the sectoral indices managed to post minor gains.
Holding firms rose 34.74 points or 0.60 percent to 5,821.10, followed by mining and oil, up 68.87 points or 0.48 percent at 14,436.29. Property added 4.17 points or 0.17 percent to 2,411.48, while services ended flat, adding just 0.96 points or 0.05 percent to 1,909.77.
Financials slid 0.25 points or 0.02 percent or to 1,512.52 while industrials gave up 56.31 points or 0.58 percent to end at 9,692.04.
Turnover improved slightly to P7.5 billion, with 1.2 billion shares changing hands. Advancers outnumbered decliners 78 to 71.
Some of the most actively traded stocks on Wednesday were Philippine Long Distance Telephone Co. (closing at P2,702 per share), China Banking Corp. (P58.50), Universal Robina Corp.
(P136.40), SM Prime Holdings, Inc. (P14.54), BDO Unibank, Inc. (P82.70), JG Summit Holdings, Inc. (P49), Metropolitan Bank and Trust Co. (P79.90), Bank of the Philippine Islands (P86.50), SM Investments Corp. (P699.50), and Ayala Land, Inc. (P28.25).
On Tuesday, Philippine shares gave up early gains to end in the red after trading turned cautious on developments overseas.
The PSEi fell 64.33 points or 1.01 percent to 6,336.34, while the wider all shares dipped 32.49 points or 0.84 percent to 3,829.24.