PSEi snaps slide ahead of inflation data
Credit to Author: TYRONE JASPER C. PIAD| Date: Wed, 04 Sep 2019 16:35:30 +0000
INVESTORS went bargain-hunting again on Wednesday, allowing the stock market to snap a two-day slide.
The bellwether Philippine Stock Exchange index (PSEi) rose 0.46 percent or 36.15 points to finish at 7,840.86, while the wider All Shares jumped by 0.28 percent or 13.16 points to end at 4,753.77.
“It was a quiet day for the index after being sold down yesterday (Tuesday) afternoon, and as the PSEi waited on August’s inflation data print tomorrow,” Papa Securities sales associate Gabriel Jose Perez said.
The PSEi on Tuesday slipped by 1.44 percent or 113.82 to finish at 7,804.71 after IHS Markit reported the day before that growth in the country’s manufacturing sector slowed last month.
Consumer price growth in August is likely to ease further on the back of lower fuel, rice and power prices, the Bangko Sentral ng Pilipinas has said.
Inflation projection for the month is pegged within the 1.3 percent to 2.1 percent range, lower than 2.4 percent in July and 5.7 percent in August last year.
The Philippine Statistics Authority will release official inflation data today, September 5.
Perez sees the market resistance level at the 8,000 mark.
For his part, AAA Equities head of research Christopher Mangun said “investors continue to focus on second liners and speculative issues as foreign investors continue to sell off blue chips.”
The main index, he added, would not be having a clear catalyst for the rest of the trading week despite the release of inflation figures.
“The government is expecting inflation numbers for August at its lowest for the year, which has not given investors any confidence toward equities,” Mangun explained.
In contrast, US markets dipped, with the Dow Jones registering the deepest plunge at 1.08 percent. The Nasdaq and S&P 500 dropped by 1.11 percent and 0.69 percent, respectively.
All Asian markets surged on Wednesday, with Hong Kong leading at 3.90 percent. Singapore, Seoul, Thailand and Shanghai climbed by 1.56 percent, 1.16 percent, 1.12 percent and 0.93 percent, respectively. Jakarta and Tokyo both rose by 0.12 percent.
In Manila, all sectors rose, except industrial and services, which fell by 0.39 percent and 1.53 percent, respectively.
Volume turnover reached 1.15 billion shares valued at P6.59 billion.
Losers outperformed winners, 102-100, while 47 issues were unchanged.