The Philippine Stock Exchange index (PSEi) gained on Wednesday, in line with other regional markets, as investors gained confidence on the likely outcome of a US Federal Reserve meeting.
The PSEi added 106.37 points or 1.59 percent to close at 6,807.72, while the wider All Shares index gained 45.90 points or 1.19 percent to 3,917.57.
Aristotle Reyes Jr., equities trader at UPCC Securities Corp., said investors were anticipating a minimal increase in US interest rates at most after the Fed ends a two-day meeting.
“Mainly, [the PSEi went up on]the expectation of a non-increase or a gradual increase by 25 basis points. This is the main reason as to why investors think prices are okay now,” Reyes said.
Despite the better turnout, however, he said Wednesday’s volume — 612.57 million shares traded – was low, meaning many investors remained on the sidelines.
“Our market is still on a wait and see stance on whether the index would go up or down [following the US Fed decision]. Due to low liquidity, our market can easily go up or down,” Reyes noted.
“But if the Fed will increase [rates by]50 basis points, our market is poised to go down further.”
All six sub-sectors went up, led by property that saw a 2.20-percent gain.
Value turnover reached P5.8 billion. Advancers outnumbered decliners, 94 to 61, while 39 issues were unchanged.
On Tuesday, the benchmark stock index decreased by 0.66 percent or 44.64 points to close at 6,701.35, while the broader All Shares index fell by 0.57 percent or 22.45 points to 3,871.67.