Shares climb on strong PHL economic outlook
STOCKS picked up on Wednesday as last minute-buying and bullish bets on the Philippine economy’s expansion lifted the market.
The broader all-shares index likewise added 19.77 points or 0.43% to 4,552.69.
“The market ended up 28 points higher on last-minute buying to close at 7,629. It appears that investors continued to buy in on the back of the World Bank’s view that the country will maintain its performance in spite of risks of rising interest rates,” PNB Securities, Inc. President Manuel Antonio G. Lisbona said in a text message.
The World Bank on Tuesday said the Philippines will continue being a top performer in East Asia and the Pacific, projecting a 6.9% growth for the country’s gross domestic product, which is within the government’s own target of 6.5% to 7.5%.
“Local markets ended on a positive note as investors sought refuge in the Philippines against other regions. US stocks yet again pared deep morning losses and only closed narrowly lower,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said.
The Dow Jones Industrial Average ended down 6.72 points or 0.03% to 20,651.30, the S&P 500 lost 3.38 points or 0.14% to 2,353.78 and the Nasdaq Composite dropped 14.15 points or 0.24% to 5,866.77.
Back home, sectoral counters were mixed. The mining and oil counter recorded a 0.55% or 67.43-point decline to 12,146.93, followed by financials which fell 0.16% or 3.19 points to 1,888.44. Services also dropped 0.10 point to finish at 1,614.18.
The industrials counter led gainers, rising 0.94% or 106.53 points at 11,377.64; property climbed 0.70% or 23.28 points to 3,331.07; and holding firms added 27.54 points or 0.36% to 7,683.19.
Advancers beat decliners, 113 to 63, while 60 stocks were unchanged.
Value turnover went down to P6.19 billion from Tuesdays P7.13 billion, with 755.58 million shares changing hands.
Net foreign buying climbed to P109.05 million on Wednesday from the previous session’s P80.53 million.
“Chart-wise, the market is overbought in the short term and is due for correction. There is a gap that needs to be covered sooner rather than later,” PNB Securities’ Mr. Lisbona said. -- A.B. Francia