Local share prices bounced back slightly on Wednesday reversing the negative trend during the early part of the week.
The benchmark Philippine Stock Exchange Index (PSEi), recovered gained 0.56 percent or 41.53 points to close at 7,501.65, while the broader All Shares inched climbed 0.51 percent or 22.92 points to 4,478.90.
However, it does not necessarily suggest a bull-run is in the making. Jonathan Latuja, equity research analyst at Unicapital Securities Inc. points out that investors are still on the edge, waiting for the outcome of the US Federal Open Market Committee meeting as well as the Bank of Japan’s possible move in the face of mounting pressure to beef up its package to stimulate Japan’s and the world’s economy.
“Today [Wednesday] was just a bounce from yesterday’s oversold condition. Investors bought into stocks that were sold cheaply in yesterday’s [Tuesday] sell off,” said Latuja. But, on the whole, market sentiment is weary. Investors, Latuja said, are waiting to know what the Fed and the Bank of Japan will do as well as the outcome of next week’s referendum in Britain to decide whether to stay in the European Union or leave.
According to Luis Limlingan, the managing director of Regina Capital Development Corp., there was substantial to make the market move much. Therefore, the market made small gain on thin trading volume, more or less following the trend elsewhere. Limlingan noted that “Asian markets were mostly up, although US ended weaker, it has nonetheless rebounded at the last minute.”
Turnover was low at P6.16 billion, with winners slightly surpassing losers, 101 to 92, while 46 issues remained unchanged.
All sub-indices were up, mostly moving sideways, except the property sector that gained 1.83 percent. The services sector was down by 0.38 percent.