STOCKS climbed on Thursday, tracking Wall Street’s rise overnight, as investors await the annual gathering of global central bankers hosted by the US Federal Reserve.
The bellwether Philippine Stock Exchange index (PSEi) went up by 62.98 points or 0.94% to close at 6,706.43 on Thursday, while the broader all shares index went up by 23.95 points or 0.67% to 3,565.28.
“The local market went up by 62.98 points or 0.95% to 6,706.43 following the performance of the US markets overnight,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.
“PSEi edged up by 0.95%, tracking US market sentiment, on the back of continued bargain hunting and as some investors dial down their expectations of more hawkish signals from the Fed in their upcoming annual gathering,” AP Securities, Inc. Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message.
Both analysts said most investors stayed on the sidelines due to cautiousness ahead of the Jackson Hole conference, as evident in the weak value turnover seen on Thursday.
Value turnover declined to P3.99 billion on Thursday with 1.28 billion shares changing hands from the P5.44 billion with 603.19 million issues seen on Wednesday.
Wall Street closed higher on Wednesday as investors awaited the US Federal Reserve’s Jackson Hole conference this week.
The S&P 500 climbed by 0.29% to 4,140.77 points; the Nasdaq gained by 0.41% to 12,431.53 points; and the Dow Jones Industrial Average rose by 0.18% to end the session at 32,969.23 points.
The three-day Jackson Hole Economic Symposium was set to begin overnight, with Fed Chief Jerome H. Powell slated to speak on Friday.
Mr. Powell is expected to discuss the Fed’s outlook for the world’s largest economy, which could give investors clues on its policy path moving forward.
Investors are divided between expecting a 50-basis-point (bp)hike and a 75-bp hike by the US central bank.
The Fed next meets to review policy on Sept. 20-21.
Back home, the majority of sectoral indices ended in the green on Thursday except for mining and oil, which declined by 47.46 points or 0.39% to close at 11,901.95.
Meanwhile, holding firms jumped by 103.50 points or 1.62% to 6,460.09; financials increased by 19.76 points or 1.24% to 1,605.71; industrials climbed by 38.34 points or 0.39% to 9,869.19; property went up by 10.45 points or 0.35% to 2,992.41; and services inched up by 5.19 points or 0.30% to 1,725.40.
Advancers outnumbered decliners, 100 versus 86, while 34 names were unchanged.
Net foreign selling increased to P213.04 million from the P183.6 million seen the previous trading day.
AP Securities’ Mr. Temporal placed the PSEi’s immediate support at 6,500 and resistance at 6,800. — Justine Irish D. Tabile