PSE index climbs on MSCI, oil tax hike suspension

LOCAL SHARES rose Wednesday amid the country’s increase in the MSCI Index’s review as well as the temporary oil tax hike suspension next year.

The local bellwether Philippine Stock Exchange index (PSEi) went up 1.15% or 79.25 points to 6,923.08 yesterday. The broader all-shares index also rose 0.73% or 31.11 points to 4,242.24.

“The PSEi’s positive closing today may have been due to the marginal increase in weight of PH in MSCI Emerging markets index as well as Metrobank’s increase in weight in the said index too,” Timson Securities, Inc. trader Jervin S. de Celis said in a mobile message on Wednesday.

The trader also noted Metropolitan Bank & Trust Co.’s thirdquarter performance. The bank posted P5.7 billion in net earnings in the July-September period, 55% higher than the P3.7 billion last year. Shares in the bank rose 3.4% or P2.20 to finish at P67 apiece.

“Investors may also be cheering on the news about the temporary suspension of oil tax next year which can possibly help in taming the local inflation,” Mr. De Celis added.

However, Papa Securities Corp. trader Gabriel Jose F. Perez pointed out that net foreign selling continued “to be a significant overhang.”

Net foreign selling totaled P831.56 million yesterday, albeit down from Tuesday’s P1.26-billion net outflow.

“With the index looking like it’s finding ground in the area of its support level near its previous lows, we look forward once again to how US markets perform [Wednesday night] for an indication on [Thursday]’s movement,” Mr. Perez said in an e-mail yesterday

The Papa Securities trader also noted that investors will be watching the Bangko Sentral ng Pilipinas’ review on Thursday afternoon.

Most counters finished yesterday with gains save for the mining and oil sector which slid 0.64% or 58.77 points to close at 9,014.31.

Meanwhile, financials jumped 1.6% or 24.75 points to 1,569.63; holding firms climbed 1.46% or 98.45 points to 6,835.48; industrials edged up 1.01% or 105.88 points to 10,503.55; services rose 0.37% or 5.12 points to 1,376.67; and property gained 0.33% or 11.31 points to 3,368.27.

Advancers trumped losers, 105 to 75, while 56 issues were unchanged.

Value turnover totaled P7.05 billion as 1.03 billion shares switched hands, down from Tuesday’s P8.17 billion.

Philippine and Indonesian stock markets gained on Wednesday as investors picked up beatendown stocks, though concerns over slowing global growth continued to dent sentiment in the region.

Indonesian shares climbed 1%, driven by gains in materials and consumer staple stocks.

Meanwhile, Singapore stocks were poised for a fourth straight session of declines, sliding up to 0.6%. Malaysian shares were also set to extend losses.

Thai shares traded lower, dragged by a rout in the energy sector, while Vietnam stocks edged 0.3% higher, boosted by real estate and consumer staple stocks. •

PSEi: 6,923.08