Stocks rise on bargain hunting and stronger peso

LOCAL shares climbed on Wednesday on bargain hunting as the peso strengthened versus the greenback amid higher investment pledges approved by the Philippine Economic Zone Authority (PEZA).

The benchmark Philippine Stock Exchange index (PSEi) climbed by 62.68 points or 0.97% to close at 6,520.80 on Wednesday, while the broader all-shares index rose by 35.43 points or 1.04% to 3,419.83.

“Market cheered BSP (Bangko Sentral ng Pilipinas) messaging that the period of strong dollar is over, spurring emerging market risk appetite,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message.

On Wednesday, the local currency ended at P55.10 against the greenback, up by 14 centavos from Tuesday’s PHP 55.24 close.

The peso opened the session at PHP 55.10 per dollar, also its closing value, and reached its weakest showing for the day at PHP 55.29. Its intraday best was at PHP 55.04 versus the dollar.

“The local bourse gained … amid continued bargain hunting. Also, strong investment pledges approved by the PEZA, boosted the sentiment,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

PEZA said it approved 198 projects this year, which are expected to generate P140.7 billion or more than double last year’s PHP 69.3 billion. The rise was due to several big-ticket projects, helping the investment promotion agency surpass its 6.7% growth target for 2022.

On Wednesday, most of the sectoral indices closed higher except services, which inched down by 0.79 points or 0.05% to close at 1,589.68.

Meanwhile, mining and oil surged by 364.01 points or 3.54% to close at 10,639.61; financials added 32.54 points or 2% to 1,659.65; property increased by 35.26 points or 1.24% to 2,877.33; holding firms went up by 52.94 points or 0.83% to 6,405.13; and industrials climbed by 42.95 points or 0.46% to close at 9,270.82.

Value turnover went up to PHP 6 billion on Wednesday with 4.36 million shares changing hands from PHP 5.58 billion or 509 million shares traded on Tuesday.

Advancers outnumbered decliners, 103 versus 68, while 46 names closed unchanged.

Foreigners turned buyers with PHP 158.45 million in net purchases on Wednesday from PHP 427.62 million in net selling seen the previous trading day.

First Metro Investment’s Ms. Ulang placed the PSEi’s support at 6,300 and its resistance at 6,600, while Philstocks’ Ms. Alviar put the index’s support at 6,400 and its resistance at the 6,600 level. — Justine Irish D. Tabile