MANILA – The Philippines’ main stocks gauge experienced a breather on Wednesday and recovered.
After sliding since Monday, the Philippine Stock Exchange index (PSEi) rose by 0.38 percent, or 25.07 points, to 6,643.45 points.
All Shares followed with a jump of 0.27 percent, or 9.42 points, to 3,541.33 points.
Most of the sectoral indices also gained during the day namely Property, 1.57 percent; Mining and Oil, 1.42 percent; and Holding Firms and Financials, both rising by 0.39 percent.
On the other hand, Industrial slipped by 0.35 percent and Services by 0.30 percent.
Volume was thin at 603.19 million shares amounting to PHP5.44 billion.
Advancers surpassed decliners at 119 to 74 while 42 shares were unchanged.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort traced the PSEi’s correction partly to the suspension of the local bond market trading due to Severe Tropical Storm Florita.
“The PSEi also corrected slightly higher today, as the markets could have already priced in/discounted the ongoing Retail Treasury Bond (RTB) issuance, which is expected to siphon off some of the excess liquidity from the local financial system/financial markets that partly triggered the healthy profit-taking earlier this week after hefty gains in recent weeks,” he said in a reply to questions from the Philippine News Agency.
He forecast the main index’s next support level to be between 6,500-6.600.
Relatively, the local currency gained against the US dollar and closed the day at PHP56.07 from Tuesday’s PHP56.21.
It opened the day at PHP56.25 and traded between PHP56.26 and PHP56.05. Average level for the day stood at PHP56.201.
Volume amounted to USD864.05 million, higher than the previous session’s USD804.95 million.
Ricafort also attributed to the ongoing RTB offering of the government the peso’s strength against the US dollar.
He said the ongoing capital-raising activity “could entail some foreign buyers/investors as well as some slightly downward correction in the US dollar vs. major global currencies lately.”
However, these factors are countered by higher global oil prices and US Treasuries yields as well as anticipations on what Federal Reserve Chair Jerome Powell would say during the Jackson Hole Forum later this week.
He forecast the peso to trade between PHP55.96-PHP56.15 against the US dollar on Thursday. (PNA)