SHARES continued to rise on Wednesday on the back of sustained bargain hunting and the rally on Wall Street and despite rising oil prices and the World Bank’s gloomy global growth outlook.
The benchmark Philippine Stock Exchange Index (PSEi) rose 15.61 points or 0.23% to close at 6,769.62 on Wednesday, while the broader all-stock index rose 6, 33 points or 0.17% at 3,604.84.
“The local stock market rose again on Wednesday thanks to bargain hunting. Positive signals from Wall Street also contributed to Wednesday’s rise, supported by falling long-term bond yields,” said Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financial, Inc. in a Viber message.
“Philippine stocks rose for a second straight day as global markets shrugged off some signs of an economic slowdown ahead of a key inflation reading,” said Regina Capital Development Corp. chief sales officer Luis A. Limlingan. , in a Viber message.
“Oil prices rose yesterday as the market tried to juggle risk sentiment and supply issues,” he added.
Mercantile Securities Corp. analyst Jeff Radley C. See said factors such as oil prices and a weaker peso are having a “big impact” on the country since we are a net importer.
Asian stocks rose on Wednesday, buoyed by a rally on Wall Street for the second day in a row as technology and energy stocks gained, Reuters reported.
The S&P 500 Technology Index rose 1% and gave the benchmark its biggest boost.
Brent crude futures for August were up 59 cents or 0.48% at $121.15 a barrel as of 0533 GMT while US West Texas Intermediate crude for July was up $120.09 a barrel of 66 cents or 0.55%.
Regina Capital’s Mr Limlingan said investors had also taken heed to the World Bank’s latest report, in which it cut its forecast for global growth to 2.9% from its original projection of 4.1% earlier this year due to soaring commodity prices and the uncertainties brought by the pandemic.
Meanwhile, he stuck to his gross domestic product growth forecast of 5.7% for the Philippines for this year. This figure is lower than the government’s revised annual growth target of 7 to 8%.
Sector indices were split on Wednesday. Financials climbed 13.66 points or 0.84% to 1,625.17; industrials gained 63.14 points or 0.69% to end at 9,195.36; and holdings rose 14.04 points or 0.22% to 6,274.53.
Meanwhile, services fell 8.77 points or 0.47% to 1,847.69; mining and oil fell by 9.06 points or 0.07% to 12,422.28; and real estate fell 1.35 points or 0.04% to close at 3,180.99.
Advances outnumbered decliners, 109 to 78, while 46 names remained unchanged.
The turnover in value reached 5.37 billion pesos with 744.91 million shares changing hands against 4.96 billion pesos with 877.07 million shows seen on Tuesday.
Overseas net sales fell to P156.68 million from P512.12 million on the previous trading day. — Luisa Maria Jacinta C. Jocson with Reuters