August 24, 2022

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Philippine shares inch up on bargain hunting

SHARES inched up on Wednesday on bargain hunting and a technical bounce as investors look ahead to the annual gathering of global central bankers hosted by the US Federal Reserve starting on Thursday.

The Philippine Stock Exchange index (PSEi) climbed by 25.07 points or 0.37% to close at 6,643.45 on Wednesday, while the broader all shares index went up by 9.42 points or 0.26% to 3,541.33.

Mercantile Securities Corp. Head Trader Jeff Radley C. See said that the market gained on a technical bounce from its 20-day exponential moving average.

“Today’s trading volume was a bit low compared to the previous days,” Mr. See said in a Viber message on Wednesday.

“The local bourse gained by 25.07 points (0.38%) to 6,643.45 as investors hunt for bargains after two straight days of decline at the support level of 6,600,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

“It was a technical bounce at the 6,600 level while investors wait for the speech from Fed Chairman Jerome Powell,” Ms. Alviar added.

The three-day Jackson Hole Economic Symposium will start on Thursday, with Mr. Powell slated to speak on Friday.

The US central bank chief is expected to discuss the Fed’s outlook for the world’s largest economy, which could give investors clues on its policy path moving forward.

The Fed has raised rates by 225 basis points since March amid elevated inflation.

Meanwhile, Asian stock markets slipped for an eighth straight session on Wednesday as investors expect a hawkish message from the Fed at this week’s Jackson Hole symposium.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell by 0.5%, while Japan’s Nikkei fell by the same margin.

Back home, the majority of the sectoral indices ended higher on Wednesday except for industrials, which went down by 34.70 points or 0.35% to close at 9,830.85; and services, which declined by 5.21 points or 0.30% to 1,720.21.

Meanwhile, property climbed by 46.12 points or 1.57% to 2,981.96; mining and oil jumped by 167.74 points or 1.42% to 11,949.41; holding firms increased by 24.75 points or 0.39% to finish at 6,356.59; and financials went up by 6.10 points or 0.38% to 1,585.95.

Value turnover inched lower to P5.44 billion on Wednesday with 603.19 million shares changing hands from the P5.67 billion with 972.68 million issues seen on Tuesday.

Advancers outnumbered decliners, 119 versus 74, while 42 names were unchanged.

Net foreign selling climbed to P183.6 million from the P100.83 million seen the previous trading day.

Philstocks Financial’s Ms. Alviar placed the PSEi’s support at 6,600 and resistance at 6,850, while Mercantile Securities’ Mr. See put support at the 6,400-6,630 range and resistance at 6,800-7,000. — Justine Irish D. Tabile