Shares advance to three-week high on earnings

Philippine shares climbed further on Wednesday as investors picked up select blue chips following positive earnings, even as concerns over the broader economy kept many on the sidelines.

The Philippine Stock Exchange index (PSEi) went up by 0.63% or 39.75 points to close at 6,366.64, while the broader all shares index rose 0.76% or 26.07 points to end at 3,463.99.

This was its best close in over three weeks or since it finished at 6,415.72 on July 20.

“The local index ended higher as investors continued to digest more corporate earnings, particularly from blue-chip counters. Stronger-than-expected results supported sentiment and encouraged selective buying across key sectors. Gains were sustained as investors remained optimistic about the earnings outlook despite lingering macroeconomic uncertainties,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“The local market’s rise is attributed to bargain hunting, together with appreciation of second-quarter/first-half corporate results of selected stocks. Trading was still tepid, however, with net value turnover at PHP 6.20 billion as many investors stayed on the sidelines amid uncertainties in the Middle East and downside risks to our economic outlook,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

Meanwhile, AB Capital Securities, Inc. said in a market note that the PSEi’s latest climb looks “flow-driven rather than earnings-led,” with activity seen in select index heavyweights.

Most sectoral indices closed in the green. Holding firms rose by 2.32% or 104.41 points to 4,607.19; financials increased by 1.87% or 36.01 points to 1,960.30; mining and oil went up by 1.25% or 233.18 points to 18,904.86; property advanced by 0.74% or 14.51 points to 1,964.90; and industrials climbed by 0.13% or 10.76 points to 8,113.32.

Meanwhile, services slumped by 1.36% or 47.30 points to 3,419.97.

Advancers outnumbered decliners, 111 to 84, while 49 names were unchanged.

Value turnover ballooned to PHP 17.63 billion on Wednesday with 1.01 billion shares traded from the PHP 5.13 billion with 881.01 million issues that changed hands on Tuesday.

Net foreign buying decreased to PHP 13.82 million from PHP 179.33 million in the previous session.

Meanwhile, global equity markets held steady and oil prices inched higher after new attacks on shipping in the Middle East dimmed expectations for an end to the Iran war, as markets turned their attention to US inflation data later in the day, Reuters reported.

In Asia, stocks rose 0.7%, led by a 3.7% gain in South Korea’s Kospi and an almost 1% rise in Japan and Taiwan stocks as chipmakers rose sharply.

Markets remained focused on US consumer prices data later in the session for signals of timing for a potential US Federal Reserve rate hike. — Alexandria Grace C. Magno with Reuters