Equities 3 MIN READ

Stocks up on window-dressing ahead of US data

August 30, 2023By BusinessWorld

Stocks climbed on Tuesday amid month-end window-dressing and as investors await the release of US data that could affect the next policy move of the Federal Reserve.

The Philippine Stock Exchange index (PSEi) rose by 64.39 points or 1.04% to close at 6,225 on Tuesday, while the broader all shares index climbed by 22.22 points or 0.66% to end at 3,354.62.

“Philippine shares opened the week higher as trading gears up for window dressing. On the data front, investors await data on home prices, job openings and consumer confidence due Tuesday morning,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Meanwhile, AB Capital Securities, Inc. Vice-President Jovis L. Vistan said that shares rallied to track the increase in Asian shares.

“Moreover, a long-awaited technical rally also ensued as a number of local issues had recently dipped into oversold territory,” Mr. Vistan said.

“Market sentiment received a much-needed boost from China’s strategic initiatives aimed at revitalizing its economy. The decision to lower benchmark interest rates and decision to reduce the stock trading stamp duty garnered a positive response from investors,” he added.

China stocks led Asian shares higher on Tuesday with investors welcoming Beijing’s efforts at supporting markets, while bonds rallied and the dollar dipped on possibly softening US data, Reuters reported.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1%, with the Hang Seng in Hong Kong up more than 2% and mainland China blue chips up 1.5%.

China has halved stock trading stamp duty, loosened margin loan rules, put the brakes on new listings and approved new retail funds in recent days — signaling, at least, resolve to steady the market even if it does little to support the sputtering economy.

After selling into Monday’s initial bounce, after the measures were announced over the weekend, foreign investors were net buyers of about $500 million in Chinese stocks on Tuesday perhaps in the hope that more substantive aid will follow.

Back home, all sectoral indices rose on Tuesday. Services increased by 22.90 points or 1.52% to 1,529.69; property climbed by 38.55 points or 1.5% to 2,598.37; mining and oil went up by 118.46 points or 1.19% to 10,048.79; financials rose by 18.27 points or 0.99% to 1,847.73; industrials improved by 50.69 points or 0.58% to 8,751.29; and holding firms added 21.82 points or 0.37% to end at 5,862.70.

Value turnover went up to PHP 5.63 billion on Tuesday with 395.06 million shares changing hands from the PHP 3.57 billion with 340.80 million issues seen on Friday.

Decliners narrowly outnumbered advancers, 89 to 85, while 53 names closed unchanged.

Net foreign selling went down to PHP 219.17 million on Tuesday from PHP 657.76 million on Friday.

For this week, Mr. Vistan placed the PSEi’s support at 6,100 and resistance at 6,300. — SJT with Reuters

This article originally appeared on bworldonline.com

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