STOCKS moved sideways on Wednesday due to a lack of fresh leads and with some investors picking up bargains as they stay on the sidelines.
The benchmark Philippine Stock Exchange index (PSEi) inched up by 1.64 points or 0.02% to close at 6,566.54 on Wednesday, while the broader all shares index rose by 7.91 points or 0.23% to 3,449.33.
“It’s the last day of trading tomorrow (Thursday) so we are expecting a possible window dressing. The market is currently trading less than our average of PHP 5 billion. Most of the investors are on vacation and some are positioning on possible themes for 2023,” Mercantile Securities Corp. Head Trader Jeff Radley C. See said in a Viber message.
Mr. See said there are no catalysts for the market now.
“It is a wait-and-see scenario due to the recession fears for the first quarter of 2023. The dollar is rallying again and some commodity prices as well,” Mr. See said.
“The local bourse moved sideways but still ended on positive territory, inching up by 1.64 points (0.02%) to 6,566.54 as investors digested the economic prospects of the country next year which remains positive despite the headwinds overseas,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.
Ms. Alviar said investors bought bargains in the telecommunications sector.
“Overseas markets were giving off mixed sentiments. Investors were worried about the headwinds next year as we may already see the adverse impact of monetary tightening, especially in the US. On the other hand, investors were also optimistic about the reopening of China’s economy after they eased their COVID-19 (coronavirus disease 2019) restrictions,” she added.
Ms. Alviar said market participation also remained weak on Wednesday.
Value turnover went up to PHP 3.7 billion on Wednesday with 1.09 billion shares changing hands from the PHP 2.89 billion with 1.06 billion issues traded on Tuesday.
Most sectoral indices closed higher on Wednesday, except for property, which declined by 21.26 points or 0.73% to 2,881.37, and industrials, which lost 10.51 points or 0.11% to end at 9,354.58.
Meanwhile, mining and oil added 145.84 points or 1.38% to close at 10,705.30; services climbed by 19.96 points or 1.24% to 1,627.29; financials increased by 5.63 points or 0.34% to 1,637.40; and holding firms inched up by 1.80 points or 0.02% to close at 6,502.99.
Advancers outnumbered decliners, 110 versus 69, while 47 names closed unchanged.
Net foreign selling climbed to PHP 120.47 million on Wednesday from PHP 47.22 million the previous trading day.
Mercantile Securities’ Mr. See placed the PSEi’s support at 6,250 and 6,400 and resistance at 6,700 and 6,800. — J.I.D. Tabile
This article originally appeared on bworldonline.com