PHL stocks rebound ahead of MSCI rebalancing

LOCAL EQUITIES staged a gradual climb on Thursday, as investors looked forward to the MSCI rebalancing on Friday and amid positive sentiment across international markets.

The 30-member Philippine Stock Exchange index (PSEi) rose 0.28% or 22.20 points to 7,853.16, bouncing back from the previous session’s decline. The broader allshares index also firmed up by 0.21% or 10.04 points to 4,760.90.

“For our local bourse today, it is our view that it is still on consolidation mode still waiting for a major catalyst such a MSCI rebalancing which will take effect [on Friday],” Philstocks Financial, Inc. Research Associate Piper Chaucer Tan said in a text message on Thursday.

Mr. Tan added that there was positive sentiment on the back of the infrastructure push of the government.

The government unveiled last Tuesday P36.23 billion worth of large-scale flood control, road and railway projects which form part of the flagship infrastructure projects for 2019.

Most of the projects will be funded through a hybrid framework with initial funding by state budget or official development assistance for the construction phase, while opting for publicprivate partnerships for operation and maintenance.

Another analyst also attributed the performance to window dressing ahead of the last trading session of August.

“The local market closed slightly with early window dressing, with the Nasdaq surging to a new high and a possible soft Brexit as drivers [yesterday],” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile message. A soft Brexit means that the United Kingdom will continue to maintain ties with the European Union.

Wall Street indices also advanced overnight, with the Dow Jones Industrial Average adding 0.23% or 60.55 points to 26,124.57. The S&P 500 index firmed up 0.57% or 16.52 points to 2,914.04, while the Nasdaq Composite index jumped 0.99% or 79.65 points to 8,109.69.

The PSEi bucked the slower performances of its regional counterparts, as fears over the trade war between the United States and China pulled down most Asian indices.

Back home, four sectors moved to positive territory, led by holding firms which rose 0.82% or 63.47 points to 7,737.48, followed by financials that gained 0.52% or 9.49 points to 1,821.68. Mining and oil went up 0.3% or 29.89 points to 9,952.63, while industrials increased 0.21% or 23.76 points to 11,287.06.

On the other hand, services dropped 0.27% or 4.26 points to 1,535.34, while property slipped 0.21% or 8.37 points to 3,951.05.

Some 1.25 billion issues valued at P6.33 billion switched hands, rising slightly from the previous session’s P6.21 billion.

Advancers outpaced decliners by a slim margin, 99 to 97, while 50 names remained unchanged.

Foreign investors reversed their buying position to record net sales of P105.35 million yesterday versus Wednesday’s net inflow of P91.21 million.