Philippine shares rose further on Wednesday as players continued to buy cheap stocks amid expectations of an overnight cut by the US Federal Reserve.
The benchmark Philippine Stock Exchange Index (PSEI) rose 0.17% or 10.61 points to close at 5,963.77, while the broader all-share index rose 0.43% or 15.70 points to close at 3,605.21.
Philstocks Financial, Inc. Research Manager Japhet Louis O. “The local market extended its gains as investors continued to grab bargains. Expectations of a rate cut by the Federal Reserve and a solid agreement between the US and China at this week's meeting boosted the market… However, gains were eventually pared as investors traded cautiously amid concerns mainly over the Philippines' corruption issues and their impact on the economic outlook,” Tantiangco said in a Viber message.
Louis A., head of sales for Regina Capital Development Corp. “The Philippine market closed higher as traders took advantage of cheaper prices,” Limlingan said in a Viber message.
The US Federal Reserve was expected to cut interest rates by a quarter percentage point on Wednesday as policymakers navigate the US economy based on limited data, despite concerns about the strength of the job market being put on top, Reuters reports.
Economists surveyed by Reuters were almost unanimous that the US central bank will cut its benchmark policy rate to a range of 3.75%-4% at the conclusion of its latest two-day meeting.
Mr. Tantiangco and Mr. Limlingan said the peso's retreat against the dollar also boosted market sentiment. The peso rose 44 centavos to close at P58.69 per dollar on Wednesday, down from its new all-time low of P59.13 on Tuesday, data from the Bankers Association of the Philippines showed.
The local unit started the trading session with weakness at P59.15 and even touched a low of P59.26 per dollar intraday, but managed to recover its losses in the afternoon session.
On Wednesday, most sector indices closed with gains. Mining & Oil jumped 3.29% or 402.36 points to 12,633.05; Industrials rose 1.38% or 121.63 points to 8,894.1; Holding firms rose 0.78% or 37.64 points to 4,844.89; And Financials rose 0.55% or 11 points to 1,981.64.
Meanwhile, assets fell 0.77% or 17.06 points to 2,181.48 and services fell 0.63% or 14.37 points to 2,268.05.
“LT Group, Inc. was the day's top index gainer, jumping 5% to P14.70. Ayala Land, Inc. was the worst index performer, falling 2.66% to P20.15,” Mr. Tantiangco said.
Advancers outnumbered decliners, 110 to 74, while 61 names closed unchanged.
Value turnover rose to P6.46 billion on Wednesday, with 690.95 million shares traded, up from P4.64 billion on Tuesday, bringing the 1.18 billion issue traded.
Net foreign sales increased from P432.57 million to P477.97 million. , Alexandria Grace C. Magno with reuters
