PSEi tracks Wall Street’s rise before Fed decision
PHILIPPINE SHARES rebounded on Wednesday to track Wall Street’s rise as investors awaited the policy decision of the US Federal Reserve.
The bellwether Philippine Stock Exchange index (PSEi) rose by 0.12% or 8.34 points to end at 6,856.77 on Wednesday, while the broader all shares index climbed by 0.15% or 5.62 points to close at 3,572.10.
“The local bourse gained by 8.34 points (0.12%) to 6,856.77 following positive cues from US markets overnight, attributed to the decline in US Treasury yields,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.
Wall Street’s three major indexes closed higher on Tuesday after shares in hotshot chipmaker Nvidia shook off early losses and investors looked ahead to the Federal Reserve’s policy meeting conclusion on Wednesday for clues on interest rate policy, Reuters reported.
Shares in Nvidia pulled out of the red to close up 1% after it revealed pricing and shipment plans for its hotly anticipated Blackwell B200 artificial intelligence chip, which it says could be 30 times faster than current chips.
At 04:15 p.m., the Dow Jones Industrial Average rose 320.33 points or 0.83% to 39,110.76; the S&P 500 gained 29.09 points or 0.56% to 5,178.51; and the Nasdaq Composite gained 63.34 points or 0.39% to 16,166.79.
“Philippine investors kept to the sidelines once more as many await the Fed decision on interest rates. Though it is widely expected that the Fed will maintain its key policy rates, analysts will be taking into consideration any rhetoric from officials regarding the timing of the cutting of interest rates and their view on controlling inflationary pressures,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“Locally, economic data remains quiet, as fund managers continue to digest earnings reports and make necessary portfolio adjustments ahead of the quarter end close,” he added.
Sectoral indices were mixed. Services increased by 1.22% or 22.07 points to 1,830.98; mining and oil jumped by 0.49% or 40 points to 8,151.38; and industrials climbed by 0.32% or 28.99 points to end at 8,861.91.
Meanwhile, property fell by 0.63% or 17.96 points to 2,801.49; financials declined by 0.12% or 2.50 points to 2,045.35; and holding firms went down by 0.06% or 4.42 points to 6,436.79.
“Monde Nissin Corp. achieved the top spot, increasing by 4.46%, while Ayala Land, Inc. was at the bottom, losing 3.64%,” Ms. Alviar said.
Value turnover climbed to P8.78 billion on Wednesday with 786.83 million issues changing hands from the P5.79 billion with 897.73 million shares traded on Tuesday.
Advancers outnumbered decliners, 101 against 92, while 43 names were unchanged.
Net foreign buying rose to P391.41 million on Wednesday from P244.88 million on Tuesday. — R.M.D. Ochave with Reuters