Still lost for leads on the local side, Philippine share prices continued to trade sideways, ending the latest session, however, with a slight recovery on mixture of good and bad global news.
Local share prices registered a slight recovery on Wednesday with the Philippine Stock Exchange index (PSEi) gaining 31.94 points, or 0.50 percent to end at 6,480.12.
“Philippine share prices walked the tightrope swinging between gains and losses as the dollar gained against a basket of currencies, and investors in Asia weighed in once more on the prospects of the Fed [US Federal Reserve] pulling the stimulus rug,” Accord Capital Equities Corp. analyst Jun Calaycay said.
He also took note that a slower service sector growth in China, and recent lethargic trades in US and European equities left little choice for the regions’ investors but to head temporarily to the exits.
Reversing morning trade losses, the wider all-shares index ended with 9.57-points increase, or 0.24 percent to 3,953.30.
Majority of the sectoral indices ended in the green except for financials, and mining and oil. Mining and oil fell by 79.46 points, or 0.57 percent to 13,730.76, while financials lost 6.26 points, or 0.24 percent to 3,953.30.
Industrial, on the other hand, registered a 107.84-point gain, or 1.12 percent to close at 9,730.13, followed by services, which increased by 10.85 points, or 0.57 percent toward 1,925.33.
Holding firms went up by 11.14 points, or 0.19 percent to 5,913.97, while property closed 4.87-points higher, or 0.19 percent to 2,528.31.
The amount of shares traded reached P7.03 billion. Decliners outnumbered advancers.
Most of the actively traded stocks were SM Investments Corp., Philippine Long Distance Telephone Co., Alliance Global Group Inc., Bank of the Philippine Islands, Ayala Corp., Megaworld Corp. and BDO Unibank Inc., among others.
In the next few days, Calaycay said that local investors may remain sensitive in reacting to the movements of the global markets, particularly that of the United States.
“This reason may surface when local corporate entities begin to announce second-quarter corporate results. The index is expected to remain range bound,” he added.
On Tuesday, local share prices made a turnaround from a four-day run-up, with the PSEi falling by 78.44 points, or 1.20 percent to 6,448.18, while the wider all-shares index decreased by 27.53 points, or 0.69 percent to 3,943.73.