THE local stock market advanced on Wednesday on bargain-hunting interest which helped reverse two days of slight declines, and with Wall Street’s gains overnight also lifting sentiment.
However, many investors also opted to stay on the sidelines to await the outcome of the US Federal Open Market Committee (FOMC) meetings this week.
The Philippine Stock Exchange index (PSEi) advanced 26.57 points or 0.38 percent to 7,093.31, while the wider All Shares also added 22.26 points or 0.53 percent to 4,189.48.
Overnight, the Dow Jones Industrial Average jumped 187.81 points or 1.1 percent, while the S&P 500 added 23.42 points or 1.2 percent and Nasdaq rose 78.36 points or 1.7 percent.
Investors are keenly awaiting the results of the FOMC meeting to see whether the US Federal Reserve will announce the end of its quantitative easing (QE) or bond buying program and when it will start raising interest rates again.
Jason Escartin, investment analyst at F. Yap Securities Inc., said that investors took their lead from Wall Street’s gains given the sideways trend of the market ahead of the FOMC meetings.
“Investors just took their cue from Wall Street’s advance ahead of the Fed’s policy announcement,” Escartin said.
“Some were encouraged by improving economic estimates at home, following forecasts from the central bank,” he added.
Escartin expects the PSEi’s immediate support at 7,050 points and resistance levels at 7,080 to 7,100 points.
All sectors ended in the green. Financials added 4.27 points or 0.26 percent to 1,654.90, industrials inched up 12.39 points or 0.11 percent to 11,429.52, and holding firms rose 36.78 points or 0.60 percent to 6,139.99.
Meanwhile, services added 2.89 points or 0.13 percent to 2,184.63, mining and oil gained 149.67 points or 0.96 percent to 15,671.68, and property surged 33.54 points or 1.24 percent to 2,741.86.
Only PLDT and Ayala Corp. were the losers among the most active stocks, while the rest were gainers. The advancers included Universal Robina Corp., Island Information and Technology Inc., Bloomberry Resorts Corp. and Premium Leisure Corp.
Volume traded was 11.13 billion shares valued at P7.64 billion.
Advancers outpaced decliners 107 to 72, while 34 shares did not move.
On Tuesday, the Philippine Stock Exchange index (PSEi) fell 36.80 points or 0.52 percent to 7,066.74 while the All Shares index slipped 17.92 points or 0.43 percent to 4,167.22.