PHILIPPINE STOCKS extended their climb on Wednesday amid continued bargain hunting and as firms’ third-quarter results boosted sentiment, joining the rise of most Asian markets.
The bellwether Philippine Stock Exchange index (PSEi) gained 48.12 points or 0.79% to close at 6,121.53 on Wednesday, while the broader all shares index went up by 10.15 points or 0.31% to end at 3,243.27.
Salisbury Securities Corp. Equity Sales Trader John Paolo R. Dela Cruz said Philippine stocks extended their gains to a third straight session to join their regional peers.
“Continued optimism on better third-quarter earnings drove investors and traders to bargain-hunt highly battered stocks,” Mr. Dela Cruz said.
“We believe that the PSEi has seen the bottom at 5,700 and we are bullish moving forward. Strong local demand continues to drive the economy and corporate earnings have been impressive,” he added.
Asian shares climbed Wednesday on hopes that the pace of US and global rate hikes will start to slow amid weak data from the world’s largest economy.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.89% higher, led by a rebound in Hong Kong and China stocks, while Japan’s Nikkei 1.2% to climb above 27,500.
Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message on Wednesday that stocks rose as investors anticipate the release of strong third-quarter earnings “amid the reopening of the economy despite the increasing inflation rate during the period.”
“Philippine shares continued their ascent on the back of a drop in bond yields. Locally, third quarter earnings results so far have either met or exceeded the market’s expectations,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
The majority of sectoral indices ended higher on Wednesday. Services went up by 23.61 points or 1.52% to 1,570.84; holding firms rose by 78.53 points or 1.35% to 5,884.27; industrials climbed by 54.12 points or 0.61% to 8,824.56; and property added 5.86 points or 0.22% to end Wednesday’s session at 2,660.90.
Meanwhile, mining and oil declined by 554.29 points or 5.22% to 10,054.50 and financials lost 4.38 points or 0.28% to close the trading session at 1,551.91.
Value turnover went down to P3.72 billion on Wednesday with 311.25 million shares changing hands from P4.37 billion with 306.07 million issues traded on Tuesday.
Decliners outnumbered advancers, 90 versus 85, while 51 names closed unchanged.
Net foreign selling went down to P25.55 million on Wednesday from P287.51 million on Tuesday.
Salisbury Securities’ Mr. Dela Cruz placed PSEi’s immediate support at 6,000 and resistance at 6,300. — A.E.O. Jose