Local market gains as investors parse Fed’s next action

The stock barometer firmed up for the second session in a row as foreign investors gobbled up more local equities while investors digested the latest US Federal Reserve meeting minutes.

The main-share Philippine Stock Exchange index (PSEi) gained 39.47 points or 0.5 percent to close at 7,888.31, supported by about P506.76 million worth of net foreign buying.

“Philippine markets went on bargain hunting mode, as the US resumed its trading after a holiday,” said Luis Gerado Limlingan, managing director at Regina Capital Development.

The latest Federal Open Market Committee minutes, Limlingan said, was relatively “dovish.”

Overall volumes were low given little market catalysts alongside North Korea’s latest missile launch and clash with the US, Limlingan said.

Except for the mining/oil counter, all sub-indices firmed up at the local market.

Value turnover stood at P7.4 billion. There were 107 advancers that edged out 95 decliners; while 54 stocks were unchanged.

Investors picked up shares of Metro Pacific, which surged by 4.04 percent; while ICTSI and Megaworld both rose by over 2 percent.

Metrobank and Ayala Corp. rose by over 1 percent while Ayala Land, Semirara, SM Prime, SM Investments and BDO also contributed gains.

Outside of the PSEi, investors picked up shares of East West Bank, which rose by 4.69 percent as investors bet on the entry of a strategic foreign investor.

Retailers Wilcon and SSI Group also climbed by 2 percent and 8.31 percent, respectively.

On the other hand, PLDT, BPI, Meralco and Jollibee all slipped.