The local stock barometer advanced for the second straight session on Thursday, breaching the 6,700 mark in thin trading, ahead of a crucial speaking engagement by the United States Federal Reserve chief.
The main-share Philippine Stock Exchange Index (PSEi) gained 62.98 points, or 0.95 percent, to close at 6,706.43. It tracked regional markets, which were mostly upbeat ahead of the Jackson Hole economic symposium, where Fed chair Jerome Powell will speak on Friday.
“Traders will be [seeking] more information about how the Fed will combat high inflation and if policymakers may cut rates when the current hiking cycle is over,” said Luis Gerardo Limlingan, head of sales at Regina Capital Development.
The US weekly jobless claims report was another indicator awaited by markets, he added.
At the local stock market, the financial and holding firm counters both added over 1 percent. The industrial, property and services counters firmed up by less than 1 percent.
Only the mining/oil sub-index failed to ride on the day’s upswing as it lost 0.4 percent.
Shift to conservative assets
There were 100 advancers that outnumbered 86 decliners, while 34 stocks were unchanged.
Value turnover was meager at P3.99 billion as rising interest rates and the weakening peso curbed risk-taking among investors, some of whom are shifting to more conservative asset classes like fixed income securities. Sy family-led SM Investments led the PSEi higher with its 3.41-percent gain. The country’s largest conglomerate recently expanded its logistics footprint with a deal to raise its interest in Airspeed to 51 percent from 35 percent.
SM’s property and banking arms SM Prime and BDO also added over 1 percent, along with fast food giant Jollibee Foods Corp. and port operator International Container Terminal Services Inc.
Some companies picked up their own shares, curbing price declines. Listed firms with enough resources tend to do so when they believe their shares are undervalued.