PSEi caught in the middle of fighting bulls and bears

The benchmark Philippine Stock Exchange Index (PSEi) was relatively flat on Wednesday, with trading activity ending at a near tossup between bulls and bears.

By the closing bell, the PSEi was down 0.05 percent, or 3.38 points, to 6,973.35. The broader all-shares index sank 0.03 percent, or 1.08 points, to 4,221.80.

“Current selling pressure is matched by the buying at current price levels, keeping volatility low,” Chris Mangun, research head at stock brokerage firm AAA Equities, said in a note to investors.

Overall, he observed that sellers were kept at bay “as most [investors] believe that valuations will continue to climb.”

Subsector performance was a mixed bag given that financials, up 2.54 percent, and property, up 0.58 percent, were the only gainers for the session. Losses were led by mining/oil and industrial, down 1.97 percent and 1.28 percent, respectively.

Mangun said a key driver was the upcoming result of the US Federal Reserve’s policy meeting.

He also noted that buyers needed to step in soon to overcome potential declines moving forward.

“The PSE’s failure to move higher in the coming sessions will trigger stronger selling pressure,” he said.

PSE data on Wednesday showed that a total of 5.22 billion shares valued at P10.7 billion changed hands. There were 111 gainers versus 96 decliners while 53 companies closed unchanged.

Property giant SM Prime Holdings Inc. was the most actively traded, ending flat at P38 per share.

It was followed by BDO Unibank Inc., up 4.61 percent to P117.90; Jollibee Foods Corp., down 3.81 percent to P206.80; Ayala Land Inc., up 1.48 percent to P37.65; and First Philippine Holdings Corp., up 3.5 percent to P75.50 per share. INQ