PSEi extends climb as market eyes bargains
THE BENCHMARK INDEX rose further on Thursday as investors continued to pick up cheap stocks and amid strong foreign buying before the release of key US economic data.
The bellwether Philippine Stock Exchange index (PSEi) rose by 0.03% or 2.45 points to close at 6,967.96 on Thursday. Meanwhile, the broader all shares index dropped by 0.09% or 3.46 points to finish at 3,610.74.
“This Thursday, the local market inched up by 2.45 points (0.03%) to 6,967.96 with investors hunting for bargains at the last minute,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.
“Foreign funds also contributed to the bourse’s climb as foreigners were net buyers with net inflows,” he added.
Net foreign buying rose to P630.22 million on Thursday from P506.95 million on Wednesday.
“Philippine equities ended up mixed ahead of the FTSE rebalancing… Investors are on the lookout for the US February producer price index due later today,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message on Thursday.
Asian shares held near sevenmonth highs on Thursday though traded mostly sideways as investors awaited fresh catalysts that would provide further clarity on the global interest rate easing cycle, Reuters reported.
MSCI’s broadest index of AsiaPacific shares outside Japan was last little changed and strayed not too far from a seven-month peak hit in the previous session, as traders shrugged off higher-thanexpected US inflation rate data.
Attention now turns to US producer price data due later in the day, which feeds into the core personal consumption expenditures (PCE) price index, as well as retail sales figures for February.
The core PCE index is the US Federal Reserve’s preferred measure of inflation.
Thursday’s data run comes ahead of the Fed’s policy meeting next week, where focus will be on clues as to how soon policy makers could commence their rate-easing cycle.
Back home, majority of sectoral indices closed lower, led by mining and oil, which dropped by 2.17% or 181.63 points to 8,166.96. Industrials decreased by 0.62% or 57.06 points to 9,013.87; services went down by 0.25% or 4.70 points to 1,842.82; and financials retreated by 0.2% or 4.19 points to 2,026.68.
Meanwhile, property climbed by 0.47% or 13.55 points to 2,840.32, and holding firms rose by 0.4% or 27.11 points to 6,679.52. “Among the index members, Bloomberry Resorts Corp. was at the top, climbing 2.43% to P11.78. Emperador, Inc. lost the most, dropping 4.65% to P16.40,” Mr. Plopenio said.
Value turnover climbed to P7.92 billion on Thursday with 891.56 million issues switching hands from the P6.51 billion with 702.86 million shares traded the previous day.
Decliners outnumbered advancers, 119 versus 84, while 41 names closed unchanged.