‘Patient’ Fed pacifies markets; PSEi clings to 8,000

The local stock barometer climbed back to the 8,000 level on Thursday as investors cheered the US Federal Reserve’s signal that it would pause its interest hiking cycle.

The main-share Philippine Stock Exchange index (PSEi) added 27.53 points, or 0.35 percent, to close at 8,007.48, tracking upbeat US and regional markets.

“[Positive] sentiment was on the back of the Fed acting on expectations that it would keep interest rates steady and remain patient for further hikes,” local stock brokerage Papa Securities said.

However, the brokerage house said a strong resistance remained at the 8,100 level, adding that a “convincing breakout past this area [is] not likely soon.”

The PSEi was buoyed by the financial, industrial, services and mining/oil counters.

On the other hand, the property counter fell by 0.57 percent.

Total value turnover for the day amounted to P10.81 billion. Foreign funds continued to flow into local equities, translating to P818.65 million in net foreign buying.

Despite the PSEi’s slight gain, market breadth was negative. There were 110 decliners that outnumbered 97 advancers, while 41 stocks were unchanged.

The PSEi was lifted by gains eked out by Ayala Land, SM Investments, ICTSI, Metrobank, Security Bank and URC, which all gained over 1 percent.

Ayala Corp., Jollibee and AGI also contributed to the PSEi’s gains.

Investors also actively traded a number of second-liner issues.

Greenergy Holdings rose by 33.48 percent after disclosing a $350-million funding deal with Korean group Thebizlink for the development of a transport hub, smart-farming agriculture area, smart-city commercial and/or mixed-use developments and other related developments.

Businessman Dennis Uy-led ISM gained 7.31 percent after obtaining approval from shareholders to conduct a share swap that will result in the backdoor-listing of Udenna Corp. The firm is also increasing its authorized capital stock to P75 billion. Minority shareholders approved the waiver of the requirement to conduct a rights offer.

Bloomberry and Cemex Holdings were both up by over 1 percent. Cemex bagged fiscal incentives for a cement production line in Antipolo.