PH shares reach breakout zone but rally in doubt
MANILA -The benchmark Philippine Stock Exchange index (PSEi) climbed for a fifth straight session on Wednesday to close above 6,300 as buyers picked up large conglomerates and banks despite the mixed showing across regional indices.
The PSEi rose 1.77 percent, or 110.74 points, to 6,374.68 while the broader All Shares index added 1.53 percent, or 51.50 points, to 3,412.88.
A total of 764.54 million shares valued at P6.73 billion changed hands while foreign net selling reached P301.2 million, data from the stock exchange showed.
The PSEi close on Wednesday places the measure above the resistance area outlined by analysts. Usually, such barrier prevents the upside movement of share prices.
Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said investors should remain wary given the recent hawkish comments made by Bangko Sentral ng Pilipinas Governor Eli Remolona Jr.
READ: BSP chief ‘honestly’ eyeing November rate hike
“Higher interest rates will be a drag on earnings,” Ravelas said on Wednesday.
Top gainers
Meanwhile, all PSE subsectors closed higher with gains led by financials (+2.28 percent), holding firms (+1.78 percent) and industrial (+1.34 percent).
Century Pacific Food Inc., the top traded stock and new entrant at the PSEi as of Wednesday, rose 1.37 percent to P29.70 per share.
It was followed by SM Investments Corp., up 1.43 percent to P850; SM Prime Holdings Inc., up 2.14 percent to P31; BDO Unibank Inc., up 4.20 percent to P141.50; and Ayala Land Inc., flat at P29.50 per share.
Aboitiz Power Corp. was up 4.55 percent to P34.50; Bank of the Philippine Islands, up 1.36 percent to P112; Ayala Corp., up 2.12 percent to P626; Jollibee Foods Corp., up 0.79 percent to P228.80; and International Container Terminal Services Inc., up 2.66 percent to P208.60 per share.
Overall, there were 118 advancers against 74 losers while 42 companies closed unchanged, data from the stock exchange showed. INQ
