PSE index edges towards 8,000 ahead of US data

THE MAIN INDEX climbed slightly on Wednesday, moving closer to the 8,000 level, as investors awaited new catalysts such as US inflation data set to be released today.

The local bellwether Philippine Stock Exchange index (PSEi) rose 9.25 points or 0.11% to 7,943.93.

The broader all-shares index declined 3.76 points or 0.07% to 4,813.71.

“Philippine markets traded sideways despite the huge recovery in the US markets [which] will be turning to the FOMC [Federal Open Market Committee] minutes later,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said via text on Wednesday.

Timson Securities, Inc. equity trader Jervin S. de Celis said traders were on the lookout for positive catalysts that can propel the index upward.

“I’m expecting this to continue until tomorrow once the US core inflation report has been released. I think that’s when the market will decide which way to go, Mr. De Celis said in a mobile message yesterday.

Should US’ March inflation move higher than expected, the US Federal Reserve will likely turn hawkish in tightening borrowing policies. This, in turn, “may put our index between the range of 7,484 and 7,788 level in the next coming weeks,” according to Mr. De Celis.

“On the other hand, if the inflation data is lower than the consensus, the US Fed may reconsider their hawkish stance on raising rates and this event may trigger foreign investors to place their money back to emerging markets like the Philippines,” he added.

Foreign net selling continued to log its fourth consecutive trading day, climbing P627.37 million from the P465.76 million on Tuesday.

Trading volume dropped to 1.23 billion shares valued at P6.52 billion from the 1.70 billion shares worth P7.65 billion recorded in the prior trading day. Decliners trumped advancers at 100 to 91, while 66 names ended unchanged.

Most counters ended in the red. Mining and oil plunged 264.66 points or 2.37% to 10,890.04 points; property fell 39.08 points or 1.07% to 3,607.49 points; financials shed 14.94 points or 0.74% to 2,002.69; and services slid 1.74 points or 0.10% to 1,626.59 points.

Meanwhile, holding firms edged up by 92.63 points or 1.15% to 8,090.58 points and industrials gained 39.83 points or 0.35% to 11,258.22 points. •