By Denise A. Valdez, Senior Reporter
LOCAL SHARES picked up on Wednesday as bargain hunters flocked the bourse in anticipation of the central bank’s interest rate decision on Thursday.
The benchmark Philippine Stock Exchange index (PSEi) grew 22.63 points or 0.38% to close at 5,864.23, while the broader all shares index climbed 7.75 points or 0.22% to end at 3,528.85.
“The market closed slightly higher today ahead of some economic announcements scheduled to be released in the coming days,” Timson Securities, Inc. Trader Darren T. Pangan said in a mobile message on Wednesday.
The Bangko Sentral ng Pilipinas’ Monetary Board will review its policy settings on Thursday. Analysts expect rates to remain at their current record lows, based on a BusinessWorld poll of 15 economists.
Sentiment likewise improved on improved manufacturing activity in China in the month of September, Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said.
“China’s official manufacturing PMI (purchasing managers’ index) stood at 51.5 while the Caixin/Markit manufacturing PMI came in at 53.0, both indicating an expansion. Participation improved with net value turnover rising from yesterday’s P4.2 billion to P5.2 billion,” Mr. Tantiangco said in a Facebook message.
Index heavyweights from the property sector were likewise instrumental in the improvement of the PSEi, AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.
“The general sentiment remains cautious, but will improve if economic activity continues to pick up and new coronavirus cases continue to decline. Investors are also watching out for the effects of the recently passed economic stimulus package,” Mr. Mangun added.
“The market will continue sideways until investors see more concrete signs of the economic rebound,” Mr. Mangun said. Timson Securities’ Mr. Pangan put the PSEi’s support at 5,750 and resistance at 6,000.
Four sectoral indices ended with gains at the close of trading on Wednesday. Property rose 42.68 points or 1.58% to 2,740.29; mining and oil added 36 points or 0.61% to 5,906.49; holding firms improved 31.18 points or 0.51% to 6,058.65; and services increased 6.33 points or 0.43% to 1,453.88.
The two sectoral indices with losses were financials, which slipped 8.36 points or 0.72% to 1,141.80; and industrial, which dropped 36.64 points or 0.46% to 7,901.21 at the close of the market.
Value turnover on Wednesday slid to P5.48 billion from P5.67 billion in the last session. Some 1.07 billion issues switched hands, lower from the previous day’s 1.45 billion issues.
Decliners outpaced the growth of advancers, 98 against 91, while 49 names ended unchanged.
Net foreign selling continued for a 14th straight day on Wednesday, growing to P585.58 million from P551.77 million on Tuesday.