The main index dipped slightly on Wednesday ahead of the release of corporate earnings reports at home and abroad due to proIft in a context of less positive prospects for the country.
The benchmark Philippine Stock Exchange Index (PSEi) fell 11.44 points or 0.18% to close at 6,274.80 on Wednesday, while the broader all-stock index rose 0, 17 points at 3,381.53.
“Philippine stocks were flat as fund managers’ attention shifted to the US, with traders betting on strong corporate earnings reports and betting markets had bottomed out,” the director said. sales of Regina Capital Development Corp. Luis A. Limlingan in a Viber. message.
“Oil prices rose as traders worried about tight supplies and a weaker dollar,” Limlingan added.
“The market opened in positive territory on positive spillovers to the US market, driven by strong US corporate earnings. However, PSEi ended the day enjoying today’s gains as profit taking pressures dominated the afternoon, snapping its two-day rally,” said Ralph Jonathan B. Fausto, equity research analyst at Unicapital Securities, Inc. in a Viber message on Wednesday.
“We can attribute the profit taking by investors today to the downward revision of GDP (gross domestic product) growth forecasts for 2022 by Fitch, which cited inflationary pressures to hamper economic growth,” Mr. Fausto added.
Fitch Ratings cut its GDP growth forecast for the Philippines to 6.5% this year from 6.9% previously, citing continued inflationary pressures from high food and other commodity prices.
The revised forecast is within the Philippine government’s target of 6.5-7.5% this year.
The majority of sector indices ended in the green on Wednesday with the exception of real estate which fell by 17.91 points or 0.62% to 2,841.91, and holding companies which fell by 4.61 points or 0.07 % at 5,888.41.
Meanwhile, Mining & Oil rose 268.70 points or 2.45% to 11,201.53; services climb 3.43 points or 0.20% to 1,643.47; industrials rose 17.56 points or 0.18% to 9,428.83; and financials edged up 0.18 points or 0.01% to end Wednesday’s session at 1,481.07.
Advances outnumbered decliners, 103 to 81, while 40 names closed unchanged.
Turnover in value soared to 5.03 billion pesos on Wednesday with 733.64 million shares traded against 3.793 billion pesos with 1.07 billion issues seen the previous trading day.
Foreign sellers turned buyers again at 22.65 million pesos on Wednesday, down from 227.51 million pesos in net sales the previous trading day.
“We expect the market to continue to trade sideways [on Thursday] as investors wait on the sidelines ahead of the US interest rate decision at its FOMC (Federal Open Market Committee) meeting on July 26-27,” added Fausto of Unicapital Securities.
Mr. Fausto placed PSEi support at 6,100 and resistance at 6,400, while Mr. Limlingan of Regina Capital placed support at 6,160 and resistance at 6,400. JID table