PSEi retests 7,300

The local stock barometer retested the 7,300 level on Wednesday as local investors selectively picked up large-cap stocks and priced in an upcoming revamp of the main stock index.

Wiping losses in the morning session, the main-share Philippine Stock Exchange index gained 21.77 points or 0.3 percent to close at 7,304.45, tracking regional markets which ended mostly higher.

“Philippine markets climbed up along with US stocks which closed at fresh record highs, boosted by encouraging retail sector earnings,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.

Limlingan added that crude oil had rallied following encouraging comments on oil production cuts.

At the local market, all counters gained, led by the rebound in the mining/oil counter which went up by 1.34 percent.

Value turnover for the day amounted to P7.24 billion. Foreign investors were net sellers to the tune of around P1 billion but local investors made up for the slack.

Despite the PSEi’s gain, market breadth was negative. There were 88 advancers that were edged out by 101 decliners while 52 stocks were unchanged.

The PSEi was led higher by Ayala Land, which rose by 3.44 percent while Semirara gained 2.76 percent.

URC and Ayala Corp. both advanced by over 1 percent while Metro Pacific, Globe Telecom, BDO Unibank and Meralco all firmed up.

The day’s most actively traded stock was Puregold, which surged by 3.6 percent. Investors loaded up on shares of Puregold in anticipation of its entry into the PSEi effective March 13.

Another notable gainer among non-PSEi stocks was Cemex, which rebounded by 3.92 percent after a heavy selldown in earlier days.

Puregold is set to replace Emperador in the 30-day basket. Consequently, Emperador fell by 1.83 percent.

Jollibee also slipped by 2.04 percent while SM Prime, Security Bank, GT Capital and PLDT all slipped.

Meanwhile, investors are closely awaiting the minutes of the January Federal Open Market Committee meeting for potential clues on the next US interest rate hike, which many expect to come as early as March.

“The January FOMC minutes might indicate the degree to which participants and (voting) members agree with (US Fed chair) Yellen’s upbeat assessments, and if the committee is leaning towards hiking sooner rather than later,” Citigroup said in a research note.