PHILIPPINE STOCKS went up further on Wednesday on tensions between the United States and China and as rate hike concerns eased on signs that the pace of the US Federal Reserve’s tightening will slow down.
The bellwether Philippine Stock Exchange index (PSEi) rose by 67.78 points or 1.06% to close at 6,430.08 on Wednesday, while the broader all shares index increased by 25.24 points or 0.74% to 3,436.83.
“Philippine shares were bought up as investors as turned away from the US as House Speaker Nancy Pelosi’s controversial visit to Taiwan would further strain already tense US-China relations,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
China furiously condemned the highest-level US visit to Taiwan in 25 years as House of Representatives Speaker Nancy Pelosi hailed the self-ruled island as “one of the freest societies in the world” and pledged American solidarity, Reuters reported.
Beijing demonstrated its anger with Ms. Pelosi’s presence on an island that it says is part of China with a burst of military activity in surrounding waters, summoning the US ambassador in Beijing and halting several agricultural imports from Taiwan.
“Global funds have started to flow back to equity markets, particularly in EMs (emerging markets) [excluding China], as interest rate concerns began to ease significantly following several compelling signs of a Fed rate hike slowdown,” AP Securities, Inc. Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message.
Mr. Temporal added that since most index heavyweights have already released their results, the market is now expected to focus on external developments.
“Meanwhile, on PH inflation due out on Friday, we don’t expect it to have a significant impact on the market as consensus forecast of 6.2% remains within BSP’s (Bangko Sentral ng Pilipinas) projected range and is likely priced in already,” he said.
Sectoral indices ended split on Wednesday. Mining and oil lost 129.14 points or 1.10% to close at 11,588.62; property declined by 6.66 points or 0.23% to 2,883.71; and services slipped by 0.70 point or 0.04% to 1,677.52.
Meanwhile, holding firms climbed 123.81 points or 2.05% to 6,137.61; financials went up by 25.27 points or 1.69% to 1,513.35; and industrials increased by 84.66 points or 0.89% to 9,507.56.
Value turnover climbed to P6.52 billion on Wednesday with 502.37 million shares changing hands from P5.87 billion on with 528.35 million issues seen on Tuesday.
Decliners narrowly beat advancers, 89 against 88, while 52 names closed unchanged.
Net foreign buying jumped to P726.48 million on Wednesday from the P36.44 million seen the previous trading day.
AP Securities’ Mr. Temporal placed the PSEi’s support at 6,000 and resistance at 6,500, while Regina Capital’s Mr. Limlingan put support at 6,200 and resistance at 6,380. — J.I.D. Tabile with Reuters
