Philippine stocks rise further on foreign buying

Philippine stocks climbed further on Wednesday as bargain hunting and foreign buying continued to lift the market, although gains were limited as investors stayed cautious amid uncertainties.

The Philippine Stock Exchange index (PSEi) rose by 0.17% or 10.54 points to close at 6,116.53, while broader all shares index inched up by 0.04% or 1.28 points to end at 3,385.85.

“The local index held above the 6,100 level on Wednesday, supported by bargain hunting and a second consecutive day of net foreign buying. The overall picture remains mixed, however, as market breadth stayed negative, with decliners outnumbering advancers for the day,” COL Financial Group Research Analyst Denise Joaquin said in a Viber message.

“Renewed tensions between the US and Iran continue to rattle global oil markets, with escalating Middle East tensions pushing Brent crude toward the USD 100/bbl (per barrel) mark, which could translate to higher pump prices if sustained,” she said.

Net foreign buying went up to PHP 219.1 million on Wednesday from PHP 164.54 million on Tuesday.

However, decliners outnumbered advancers, 106 to 88, while 55 names were unchanged.

“The local index closed slightly higher as trading remained cautious, with investors continuing to focus on selected index heavyweights. Market sentiment also improved as the Philippine peso showed some relief against the US dollar. Nevertheless, upside remained limited as investors maintained a selective approach amid prevailing economic uncertainties,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The peso on Wednesday rebounded by 11.2 centavos to end at PHP 62.513 versus the dollar from Tuesday’s all-time low close of PHP 62.625, according to Bankers Association of the Philippines data.

Brent crude rallied towards USD 100 per barrel on Wednesday, keeping the mood in Asian stock markets subdued, as attacks intensified in the Middle East, Reuters reported.

Iranian-backed Houthis in Yemen launched strikes on several Saudi cities on Tuesday, further embroiling a US ally in the conflict, while US forces hit multiple Iranian oil tankers and Iran struck a US base in Jordan.

Oil prices jumped for a fourth straight session on Wednesday, with Brent crude futures rising USD 1.10 to USD 99.02 a barrel. US West Texas Intermediate crude was at USD 93.95 a barrel, up USD 0.93.

Sectoral indices closed mixed on Wednesday. Services jumped by 1.59% or 52.68 points to 3,368.21; mining and oil rose by 0.55% or 119.06 points to 21,659.77; and industrial went up by 0.05% or 3.69 points to 7,971.93.

Meanwhile, holding firms decreased by 1.29% or 56.01 points to 4,296.19; property went down by 0.82% or 15.33 points to 1,852.40; and financials slipped by 0.12% or 2.37 points to 1,898.99.

Value turnover rose to PHP 5.9 billion on Wednesday with 939.6 million shares traded from the PHP 4.39 billion with 558.78 million issues on Tuesday. — Alexandria Grace C. Magno