The Philippine stock market gained a little more ground as investors are cautiously becoming more optimistic because of developments here and overseas.
The benchmark PSEi moved up 16.60 points or 0.24 percent to close at 7,082.15 although the Financials and Industrial counters retreated.
Volume was slightly lower at 27.5 billion shares worth P11.67 billion as gainers beat losers 130 to 91 with 44 unchanged.
“Local shares closed slightly higher as investors weighed the possible impact of a large stimulus package on inflation as well as Fed’s extended easy policy and others continued to align portfolios with the release of the MSCI rebalance results and ahead of that of the PSEi,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “Others are looking into the meeting of the BSP scheduled tomorrow (Feb. 11). The policymakers will meet on 11 Feb, and we see that key rates will likely be left untouched.”
Philstocks Financial Senior Analyst Japhet Tantiangco said “The positive sentiment was driven by hopes that the BSP would keep policy rates at accommodative levels to support the economy.”
He noted that, “Foreign funds also helped in Wednesday’s climb with net foreign buying posting P122.87 million.”
AAA Equities Head of Research Chris Mangun said “The PSEi continued higher as more investors turned optimistic, brought by a decline in new global covid-19 cases. This renewed optimism has encouraged investors that were on the sidelines to take a second look at the market.”
“Holding firms continue to be the strongest sector, carrying the market higher as investors prefer the diversified portfolio rather than bet on specific industries,” he said.
Mangun pointed out that, “The main index traded higher earlier in the session but gave up some of its gains toward due close as selling pressure picked up. We may see more profit-taking in the next trading session as it will be the last for the week due to the holiday on Friday.”