PHILIPPINE shares climbed on Wednesday, along with other markets in the region, as earnings of most companies rebounded in the second quarter.
The Philippine Stock Exchange index (PSEi) went up by 118.77 points or 1.81% to close at 6,680.18 on Wednesday, while the all shares index gained 45.94 points or 1.12% to end at 4,118.41.
“We’re on a medium-term rally due to the big drop ever since months ago,” Summit Securities, Inc. President Harry G. Liu said in a phone call.
“With earnings of most listed companies improving in the second quarter despite the lockdown or restrictions, local market continued to recover as investors’ sentiment [improved] with net foreign investors buying and most Asian markets on the upside,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message.
“The local bourse climbed together with most Asian markets as investors look forward to the US Federal Reserve’s stimulus updates,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message.
Asian stocks edged up from a three-week low on Wednesday, but gains were capped by ongoing fears about the Delta variant of the coronavirus, Reuters reported.
Japan’s Nikkei snapped a four-day close in the red to climb 0.59% to 27,585.91; the Shanghai SE Composite index rose 1.11% to 3,485.29; and Hong Kong’s HSCEI went up by 0.73% to 9,125.69.
Most sectoral indices closed in the green on Wednesday except for mining and oil, which went down by 129.06 points or 1.35% to close at 9,375.25.
Meanwhile, holding firms climbed 174.19 points or 2.68% to 6,651.15; property rose 80.78 points or 2.64% to 3,141.06; financials added 14.90 points or 1.04% to finish at 1,445.34; services increased by 10.44 points or 0.64% to 1,639.24; and industrials went up by 57.20 points or 0.59% to 9,641.08.
Value turnover inched down to P6.18 billion with 1.14 billion shares switching hands on Wednesday, from the P6.76 billion with 1.20 billion issues traded on Tuesday.
Advancers outperformed decliners, 94 against 88, while 55 names closed unchanged.
Foreigners turned buyers anew with P90.51 million in net purchases from the P534.4 million in net outflows seen in the previous trading day.
“Currently trading at its immediate resistance at the 6,680 level, we may have to see in the remaining days of the week if this area holds,” Timson Securities’ Mr. Pangan said. “Otherwise, next immediate support is at 6,270.”
Summit Securities’ Mr. Liu expects the market to “calm down” from the rally and test lows.
“If [in] the third quarter, all the [companies] will be doing well and [are forecasted] to do better next year, then we will be able to reverse the market before the year ends,” he added, noting that all market fundamentals have been showing up, considering the slew of initial public offerings slated for the year. — K.C.G. Valmonte with Reuters