PSEi climbs ahead of Yellen’s Congress testimony
THE MAIN INDEX rose on Wednesday, nearing the 8,000 level, but still remains in consolidation phase and may be stuck between support and resistance until catalysts emerge.
The broader all shares index increased 0.86% or 40.52 points to 4,754.67.
“Once again, the PSEi closes in on the 8,000-level even as the backdrop has not materially changed. In fact, if there have been any changes so far, these have mostly raised concerns, if not outright doubts, on the broad economy’s prospects,” read the market recap of Philstocks Financial, Inc. on Wednesday.
“For now, breaches of the 8,000 line will continue to be met by profit taking, unless a fresh catalyst provides the market enough support to keep above the line,” Philstocks Financial added, noting that investors will mostly be anticipating second quarter earnings releases for catalysts.
“Despite this rally, it appears that the market will stay in a consolidation phase and will move between 7,800 and 8,000 absent any new catalysts,” Manuel Antonio G. Lisbona, president of PNB Securities, Inc., similarly noted in a mobile phone message on Wednesday.
All sectors ended in the green. Property led the charge on Wednesday, jumping 2.14% or 78.3 points to 3,731.65. Holding firms went up 0.93% or 73.39 points to 7,910.91; mining and oil climbed 0.83% or 105.50 points to 12,738.81; industrials rose 0.75% or 82.98 points to 11,145.92; services increased 0.47% or 8.06 points to 1,702.74; and financials inched up 0.06% or 1.33 points to 1,971.83.
Advancers outnumbered losers, 125 to 85, while 42 names closed unchanged.
Value turnover climbed to P9.35 billion yesterday, higher than the P7.17 billion logged on Tuesday, as 1.59 billion shares changed hands.
Foreigners turned buyers anew with net purchases totalling P241.66 million, a turnaround from Tuesday’s net selling of P63.60 million.
Most Southeast Asian stock markets rose on Wednesday in line with broader Asia as fresh controversy over US President Donald J. Trump’s administration had little impact on global equities, with investors looking ahead to Federal Reserve Chair Janet L. Yellen’s comments later in the day.
US stocks took a brief tumble overnight after e-mails disclosed Mr. Trump’s eldest son welcomed help from a Russian lawyer for his father’s 2016 election campaign, but the stocks reversed their losses by close.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4% on Wednesday.
Indonesia inched up 0.5%, helped by strong gains in the financial sector. Thai shares were up as much as 0.3%, supported by industrials and financials, while Vietnam rose as much as 0.6%.
Meanwhile, Singapore shares fell as much as 0.5%. Malaysian shares were largely flat. -- JCL with Reuters