• PSEi rebounds on Wall St rally


    The Philippine Stock Exchange index (PSEi) on Thursday bounced back from a weak session the previous day, buoyed by Wall Street’s overnight rally following the policy meeting of the US Federal Reserve.

    While not providing specifics, minutes of the latest Federal Open Market Committee indicated that interest rates may be kept low for the time being, boosting optimism in US markets and spurring a nearly 275-point gain for the Dow Jones Industrial Average.

    The PSEi closed Thursday with a mild gain of 16.21 points or 0.23 percent at 7,201.89, while the broader All Shares index rose 0.22 percent or 9.49 points to 4,265.22.

    Lexter Azurin, head of research at Unicapital Securities Inc., said in a phone interview that the market tracked gains on Wall Street overnight, influencing the Philippine financial markets, as well as the Asian markets.

    “We went up in a big way today as we recovered from the decline yesterday, partly following the US rally last night after Dow was favorable on the recent US Fed meeting last night,” Azurin said.

    “In addition, the market also rose after inflation rates slowed for September. The PSEi was up as much as 50 points in intraday, but we closed with 16 points increase as investors were cautious for valuations. We are at 20 times price to earnings ratio, which is the highest in region,” he added.

    Azurin said the market is seen to trade at 7,150 to 7,450 points in the near term.

    Only Mining and oil decreased among the sectoral indices, declining 0.36 percent or 60.03 points to 16,655.32. The rest were gainers: Financials inched up 0.05 percent or 0.86 points to 1,698.04; industrials increased 0.17 percent or 19.53 points to 11,551.33; holding firms climbed 0.23 percent or 14.32 points to 6,344.38; services advanced 0.36 percent or 7.59 points to 2,120.80; and property jumped 0.58 percent or 16 points to 2,795.02.

    Azurin said SM Investments Corp., Philippine Long Distance Telephone Company, Alliance Global Group Inc. and BDO Unibank Inc. pushed the market up, and “accounted [for]about 16 points” of the Thursday trading session.

    Besides those four companies, other advancers included Ayala Land Inc., Meralco, and Megaworld Corp., while losers included Metrobank, Ayala Corp., DMCI Holdings Inc., and Semirara Mining and Power Corp.

    Total volume traded was again high 9.717 billion shares, valued at P7.7 billion. Advancers outnumbered decliners, 97 to 84, while 37 issues were unchanged.

    On Wednesday, the benchmark stock index went below 7,200 points following the lower International Monetary Fund global economic forecast. The PSEi dropped 53.70 points or 0.74 percent to close at 7,185.68, while the wider All Shares likewise lost 22.38 points or 0.52 percent to end at 4,255.73.


    Please follow our commenting guidelines.

    Comments are closed.