Bourse ends at one-month peak on US Federal Reserve cues

THE Philippine Stock Exchange index (PSEi) finished at a one-month high on Wednesday, drawing strength from Wall Street’s rise on Federal Reserve Chairman Jerome Powell’s optimistic remarks on the US economy and solid earnings results. PSEi gained 69.69 points or 0.94% to close 7,451.37 — its best finish since June 18’s 7,414.11 — while the all shares index climbed 27.13 points or 0.61% to 4,492.51. Joining PSEi in its rise in Asia were Japan’s Nikkei (up 0.43%) and TOPIX indices (0.356%).

THE Philippine Stock Exchange index (PSEi) finished at a onemonth high on Wednesday, drawing strength from Wall Street’s rise on Federal Reserve Chairman Jerome Powell’s optimistic remarks on the US economy and solid earnings results.

PSEi gained 69.69 points or 0.94% to close 7,451.37 — the best finish since June 18’s 7,414.11 — while the all-shares index climbed 27.13 points or 0.6% to 4,492.51.

Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile phone message that PSEi’s “activity focused on the… statement from Powell and strong US macro data” that fueled the rise of all three major Wall Street indices.

Joining PSEi in its rise were Japan’s Nikkei ( up 0.43%) and TOPIX indices ( 0.36%), while Hong Kong’s Hang Seng Index, the Shanghai SE Composite Index and the blue-chip ShanghaiShenzhen CSI 300 gave up 0.23%, 0.35% and 0.52%, respectively.

China Bank Securities Corp. Research Director Garie G. Ouano said the PSEi’s rise was likely due to bargain hunting. “(The PSEi’s performance was) still likely just a continuation of broad bargain hunting after the index exited bear territory,” Mr. Ouano said in a text message. “The fact that the market largely ignored bad news today (e.g. more BSP rate hikes, weak auto sales) suggests that these developments have been price in already.”

Expectations have been mounting among bank economists that quickening inflation — which picked up for the sixth straight month to a fresh fiveyearhigh 5.2% in June — will force the Bangko Sentral ng Pilipinas (BSP) to raise policy interest rates further next month after back-to-back increases of 25 basis points each in May and June.

All six sectoral indices moved to positive territory, led by the property sector which gained 1.35% or 48.83 points to 3,644.98, followed by holding firms that increased by 1.06% or 77.06 points to 7,307.31; mining and oil which climbed 0.84% or 81.67 points to 9,740.29; financials which rose by 0.64% or 11.77 points to 1,834.97; services which went up 0.52% or 7.53 points to 1,450.76; and industrials which added 0.33% or 35 points to 10,550.49.

Turnover picked up to P4.25 billion on Wednesday after some 1.24 billion issues changed hands, versus the preceding day’s 456.02 million issues worth P3.59 billion.

Stocks that gained outnumbered those that lost 108 to 76, while 52 others ended flat.

Overseas investors snapped their nine- day selling streak, ending Wednesday with P203.79million net foreign buying.

Thirteen of the 20 most active stocks gained, including Ayala Land, Inc. ( 2.94% to P38.50); SM Investments Corp. (1.11% to P910) and SSI Group, Inc. (9.39% to P1.98) after announcing it will bring in New York-based burger joint Shake Shack by 2019. The five on the list that lost included Metropolitan Bank & Trust Co. (0.36% to P69.75) and Megawide Construction Corp. (6.59% to P17).