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MANILA, Philippines — The local stock index firmed up on Wednesday, tracking an overnight gain on Wall Street following a favorable US inflation report.
The Philippine Stock Exchange index gained 22.98 points or 0.33 percent to close at 6,892.92, in line with the upswing seen in most markets across the region.
A report that US inflation eased to 0.3 percent in June from 0.4 percent in May boosted expectations that the US Federal Reserve won’t be in a hurry to raise interest rates. Overnight, the Dow Jones Industrial index gained 61.81 points to close at 17,113.54, setting an upbeat backdrop for Asian markets.
Most of the Philippine counters advanced but the biggest gainer was the industrial sub-index (+1.49 percent).
Value turnover was thin at P6.74 billion ahead of the “ghost month” period, when many Asian investors stay out of the market.
There were 82 advancers against 80 decliners while 65 stocks were unchanged.
The day’s most actively traded stock was URC, which gained 4.75 percent after clinching a deal to buy New Zealand’s largest biscuit and snack food company, Griffin’s.
Other notable PSEi gainers were Philex (+3.96 percent), FGEN (+2.77 percent) and RLC (+2.21 percent). Shares of AGI, SMIC, EDC, SM Prime and Bloomberry also firmed up.
Outside of PSE stocks, Nickel Asia (+2.75 percent) gained in heavy trade alongside Cosco Capital (+2.24 percent). The latter’s principal investor Lucio Co announced on Wednesday a deal – through a privately held holding firm – to acquire a 38 percent stake in Philippine Bank of Communications.
Property developer VLL (+0.51 percent) was likewise among the most heavily traded stocks.
On the other hand, Metrobank (-1.45 percent) and MPI (-2.16 percent) were among the notable PSEi decliners. Metrobank has completed a P6.5-billion tier-2 issuance while MPI’s North-South Luzon Expressway connector project was ordered to be subjected to a Swiss challenge.
Shares of BDO and AC likewise declined.
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