The local stock barometer ended a tad higher on Wednesday, aided by large foreign inflows related to private equity firm KKR’s fresh investment in First Gen Corp.
The main-share Philippine Stock Exchange index (PSEi) added 1.99 points or 0.03 percent to close at 6,209.71, in line with modest gains seen elsewhere in the region.
There was a hefty P6.24 billion in net foreign fund flow into the market as P9.6 billion worth of First Gen shares bought by KKR were crossed at the local bourse. Value turnover surged to P15.66 billion.
One bright spot for the PSEi’s technical readings, Papa Securities said, was a descending wedge that emerged after a strong rally in late May to early June, which could be generally regarded as bullish.
“With the index trading near its 6,000 major support, keep an eye for a breakout past this pattern as doing so could lead us back to the 6,500 area,” Papa Securities said.
Papa Securities noted that President Duterte’s decision to keep Metro Manila in general community quarantine and Cebu in enhanced community quarantine was just a perpetration of the status quo and thus unlikely to create jarring moves.
The market was shored up by the industrial counter, which gained 1.45 percent, while the financial, mining/oil and property counters also firmed up. The holding firm and services counters declined.
Despite the PSEi’s slight gain, there were slightly more decliners (98) than advances (95).
The PSEi was perked up by Jollibee, Universal Robina Corp. and First Gen, which all rose by over 2 percent.
SM Prime, GT Capital, Globe and Metrobank all gained over 1 percent.
Ayala Land and PLDT also firmed up.
Outside of the PSEi, notable gainers included Cosco Capital, which advanced by 7.51 percent and Dito, which rose by 1.89 percent. —DORIS DUMLAO-ABADILLA