Equities trade flat ahead of PSEi rebalancing

MANILA  -The benchmark Philippine Stock Exchange index (PSEi) was little-changed on Tuesday with trading activity driven by the upcoming index rebalancing.

By the closing bell, the PSEi added 0.02 percent, or 1.46 points, to 6,305.99 while the broader All Shares index was up 0.19 percent, or 6.50 points, to 3,405.62.

“The PSEi inched up on market-on-close buying after trading in the red for the most part of the day’s session,” said Juan Paolo Colet, managing director at investment bank China Bank Capital Corp.

“The move was helped by a surge in trades of [Union Bank of the Philippines] and [Nickel Asia Corp.] as institutional funds prepared for the changes to the PSE benchmark index that will take effect on Wednesday,” he added.

A total of 858.83 million shares valued at P5.94 billion changed hands while foreigners were net sellers amounting to P881.1 million, data from the stock exchange showed. Subsectors closed mixed as mining and oil, industrial and services saw gains while holding firms, financials and property stocks retreated.

UnionBank, which will be replaced on the PSEi by Nickel Asia on Oct. 4, rose 5.10 percent to P64.95 per share, recovering lost ground after heavy selling in recent days.

It was followed by Nickel Asia, up 10.77 percent to P6.48; Bank of the Philippine Islands, down 2.07 percent to P109; BDO Unibank Inc., down 0.28 percent to P141; and Phoenix Petroleum Philippines Inc., up 20.19 percent to P6.31 per share.