PHILIPPINE SHARES extended their gains on Tuesday on bargain hunting and strong third-quarter results of listed companies.
The benchmark Philippine Stock Exchange index (PSEi) gained 44.62 points or 0.74% to end at 6,073.41 on Tuesday, while the broader all shares index rose by 16.45 points or 0.51% to close at 3,233.12.
AB Capital Securities, Inc. Vice-President Jovis L. Vistan said the PSEi went up on improved market sentiment amid strong financial results of some listed firms.
“Stocks moved higher today, driven by resilient third quarter corporate earnings results,” Mr. Vistan said in a Viber message on Tuesday.
AP Securities, Inc. Equity Research Analyst Carlos Angelo O. Temporal likewise said in a Viber message that stocks rose as investors positioned “in anticipation of potentially stellar third-quarter earnings.”
“Investors continued to bargain hunt into the Philippine market as the first batch of third-quarter earnings indicated the economy has been able to withstand the downturn of the global economy,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“Bets were also being made on the possibility that BSP (Bangko Sentral ng Pilipinas) may raise the benchmark rates by more than 100 bps (basis points) before the year ends to match the step of the Federal Reserve,” Mr. Limlingan added.
BSP Governor Felipe M. Medalla on Monday said the central bank may need to raise rates by more than 100 bps at its last two meetings this year on Nov. 17 and Dec. 15, depending on the Fed’s aggressiveness.
The BSP has so far raised key rates by 225 bps this year to tame inflation and support a weakening currency that has added to price pressures.
Meanwhile, the Fed is expected to hike rates by 75 bps for a fourth straight time at its own policy-setting meeting on Nov. 1-2. It has raised borrowing costs by 300 bps since March.
Back home, the majority of sectoral indices ended higher on Tuesday. Financials went up by 22.25 points or 1.45% to finish at 1,556.29; holding firms added 50.36 points or 0.87% to end at 5,805.74; property gained 20.32 points or 0.77% to 2,655.04; and industrials climbed by 56.28 points or 0.64% to 8,770.44.
Meanwhile, services went down by 17.09 points or 1.09% to 1,547.23 and mining and oil declined by 63.08 points or 0.59% to 10,608.79.
Value turnover went up to P4.37 billion on Tuesday with 306.07 million shares changing hands from the P3.48 billion with 406.76 million issues traded on Monday.
Decliners outnumbered advancers, 95 versus 74, while 48 names closed unchanged.
Net foreign selling went up to P287.51 million on Tuesday from P221.28 million on Monday.
AP Securities’ Mr. Temporal placed the PSEi’s support at 5,500 and resistance at 6,200, while AB Capital Securities’ Mr. Vistan put the index’s support and resistance at 5,830 and 6,150, respectively. — Ashley Erika O. Jose