Philippine shares rise further on increased buying

Philippine shares continued to climb on Wednesday amid increased buying and as the market awaits the release of US data that could affect the next move of the US Federal Reserve.

The Philippine Stock Exchange index (PSEi) rose by 16.69 points or 0.26% to end at 6,241.69 on Wednesday, while the broader all shares index went up by 8.11 points or 0.24% to close at 3,368.25.

“Investors are slowly buying into the market as we see buying pressure at this level. It’s not that significant yet due to the low value turnover as compared to months before,” Mercantile Securities Corp. Head Trader Jeff Radley C. See said.

Value turnover went up to PHP 3.84 billion on Wednesday with 459.94 million shares changing hands from the PHP 3.41 billion with 437.48 million issues seen on Tuesday.

“Philippine shares still managed to eke out modest gains despite rising oil prices after Saudi Arabia and Russia extended their voluntary supply cuts… On Wednesday, investors await the release of the Beige book, as well as economic data releases on the US trade deficit and services industry,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Saudi Arabia and Russia on Tuesday said they would extend voluntary oil cuts to the end of the year, despite a rally in the oil market and analyst expectations of tight supply in the fourth quarter, Reuters reported.

Oil prices rose sharply following the news, with Brent rising above $90 a barrel for the first time since November, despite steady increases in Iranian and Venezuelan oil exports as the market believes the United States is not enforcing sanctions as stringently as in previous years.

The Saudi and Russian voluntary cuts are on top of the April cut agreed by several OPEC+ (Organization of the Petroleum Exporting Countries and its allies) producers, which extends to the end of 2024.

Mr. See added that the market is monitoring Metro Pacific Investments Corp.’s (MPIC) delisting plans.

Most sectoral indices went up on Wednesday. Holding firms rose by 42.83 points or 0.71% to 6,027.28; services gained 6.29 points or 0.41% to end at 1,517.51; industrials went up by 15.02 points or 0.17% to 8,834.67; and financials climbed by 1.17 points or 0.06% to 1,820.

Meanwhile, mining and oil fell by 109.85 points or 1.07% to 10,136.06 and property declined by 8.52 points or 0.33% to 2,572.49.

Decliners outnumbered advancers, 95 to 91, while 40 names closed unchanged.

Net foreign selling declined to PHP 663.89 million on Wednesday from PHP 669.21 million on Tuesday.

MPIC is one of the three key Philippine units of Hong Kong-based First Pacific, the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls. — SJT with Reuters