PSEi firms up as geopolitical jitters wane

The local stock barometer ended slightly higher on Wednesday on selective buying by investors who heeded rebounding regional markets as geopolitical jitters waned.

The main-share Philippine Stock Exchange index added 8.34 points or 0.11 percent to close at 7,956.73.

“Markets have again rapidly retraced the fear of geopolitical deterioration following (Tuesday’s) missile launch by North Korea,” Citi said in a regional research note.

“Given that there has been no further escalation of rhetoric by either US or North Korean parties, this price action likely reflects investors’ experience that geopolitical rhetoric can quieten as quickly as it escalates, and the market’s pervasive belief that these symbolic provocations do not raise the underlying minimal risk of military confrontation,” it added.

The industrial, holding firm, services and mining/oil counters supported the day’s modest gain while the cyclical financial and property counters slipped.

Value turnover for the day amounted to P5.87 billion.

Despite the PSEi’s gain, market breadth was negative. There were 101 decliners which edged out 91 advancers while 53 stocks were unchanged.

There was net foreign selling amounting to P55.9 million.

The PSEi was led higher by URC, which rose by 1.09 percent, alongside modest gains eked out by BDO, Ayala Corp., SM Investments, PLDT, Puregold, Meralco and Megaworld.

Outside of PSEi stocks, investors gobbled up shares of gaming firm Bloomberry, which rose by 3.53 percent ahead of the MSCI rebalancing which will take effect at the end of Thursday’s trades.

Bloomberry’s weight in the MSCI increased by 0.35 percentage.

Meanwhile, Security Bank and Metrobank fell by over 1 percent while SM Prime, GT Capital, EDC and BPI also slipped.

Outside of PSEi stocks, East West Bank fell by 3.18 percent.