OPTIMISM BOOSTS PSEI

The main index continued its rally from yesterday, which almost erased almost all the losses from the beginning of the week

The local bourse ended Thursday on a high note as investors take advantage of internal and external developments, including the slowdown in the country’s headline inflation in August as well as positive progress in offshore geopolitical issues.

The Philippine Stock Exchange index (PSEi) eked out a 57.33-point gain to close the session 0.73 percent higher at 7,898.19.

Likewise, the all-shares index was up 0.43 percent to 4,774.28, while five out of the six sub-indices registered gains. The mining and oil index emerged as outlier.

“The PSEi ended higher, up 0.73 percent on average trading volumes. The main index is now only down a third of a percent for the week,” head of research for AAA Equities Philippines Christopher Mangun said in a daily market note.

Volumes were average with turnover value at P6.25 billion, albeit higher from Wednesday’s P5.89 billion. Advancers won over decliners, 113 to 77, while 53 issues were unchanged.

Meanwhile, foreign investors remained in selling mode with net purchases amounting to P672 million, however lower from P770 million the prior day.

The country’s headline inflation cooled down to 1.7 percent in June from 2.4 percent in July and a high base of 6.4 percent in August last year due to decreases in the prices of fuel, electricity and food and non-alcoholic beverages.

The reading falls within the Bangko Sentral ng Pilipinas’ target range of 1.3 percent to 2.1 percent.

Meanwhile, Hong Kong leader Carrie Lam is withdrawing the contested extradition bill that sparked monthslong protests, disrupting the escalation which was seen to inflict economic damage. Moreover, United States and China are reportedly holding another meeting in Washington next month.

China’s Shanghai Composite index advanced 0.96 percent, while Japan’s Nikkei 225 closed 2.12 percent higher. Hong Kong’s Hang Seng index dropped 0.31 percent after surging four percent following the announcement as investors take a closer watch of the unfolding event.

The Dow Jones Industrial Average rose 0.91 percent, while the S&P 500 and Nasdaq Composite climbed 1.08 percent and 1.30 percent, respectively.

Here, the property index gained 0.96 percent, followed by the services, up 0.83 percent; holding firms index, up 0.82 percent; financials index, up 0.59 percent; and industrial index, up 0.19 percent. The mining and oil index receded 3.66 percent.

“The main index continued its rally from yesterday, which almost erased almost all the losses from the beginning of the week. If this continues tomorrow, we may see it go above the key 8,000 level. The other alternative is it ends the week flat. We do not see anything particularly negative as of the moment,” Mangun said.