PSEi firms up at 8,400

The local stock barometer firmed up at the 8,400 level on Wednesday, defying the downturn seen across regional markets, due to selective buying particularly on banking stocks.

Reversing the decline in early morning trade, the Philippine Stock Exchange index closed 44.47 points or 0.53 percent higher at 8,404.69.

Local stock brokerage Papa Securities said the market seemed to be consolidating after straying below its long-term uptrend line. Major support is now seen at the 8,050 level.

The day’s upswing was led by the financial counter, which advanced by 1.29 percent as investors gobbled up shares of BDO and Security Bank, which both surged by over 3 percent. BPI contributed modest gains.

In an environment of rising interest rates, banks are expected to benefit in the form of higher lending margins.

“Looking forward, what we’ll need to watch is if inflation would continue to dampen the market in the coming days. (It’s) more so that the BSP (Bangko Sentral ng Pilipinas)’ monetary policy meeting will come up in two weeks’ time on March 22, making everyone ask if they will indeed raise rates this time and of course, by how much,” Papa Securities said.

With the 4.5 percent February inflation breaching consensus forecasts, Papa Securities said there’s possibility that BSP may hike rates in the upcoming meeting.

Meanwhile, the industrial, holding firm and property counters also closed higher.

On the other hand, the services and mining/oil counters fell by 0.3 percent and 1.74 percent, respectively.

Value turnover for the day amounted to P8.63 billion. Local investors mostly supported the market as foreign investors were net sellers amounting to P295.9 million.

Despite the PSEi’s gain, market breadth was negative: there were 113 decliners that outnumbered 100 advancers while 48 stocks were unchanged.

Aside from banking stocks, the PSEi was also lifted by conglomerate Ayala Corp., which added 2.12 percent, while Jollibee and GT Capital both advanced by over 1 percent.

Ayala Land Inc., SM Investments Corp. and URC also contributed to the day’s gains.

Outside of the PSEi basket, pundits focused on third telco aspirant Now Corp., which sizzled by 17.96 percent, while electronics manufacturer Ionics surged by 13.25 percent. Bloomberry added 0.28 percent.

On the other hand, investors sold down shares of Semirara, which slid by 3.7 percent, while Megaworld likewise lost 1.25 percent.

Metrobank defied buoyant peers, declining by 0.99 percent. SM Prime also slipped by 0.42 percent.

There was profit-taking on non-PSEi stocks MRC Allied and PXP Energy, which fell by 3.9 percent and 1.92 percent, respectively.