PSE Index Stays Above Resistance Level Despite Slight Drop

The Philippine Stock Exchange (PSE) index slightly declined to 7,155.90 points on Wednesday, down by 19.46 points or 0.27%.

The Philippine Stock Exchange (PSE) Index, September 18, 2024

Despite the drop, the index remains above the resistance level it breached on Monday, as foreign investors continued to be net buyers in anticipation of Christmas trading, which typically sees a rise in blue-chip stock prices.

The Financials sector lost 0.66%, Industrials went down by 0.12%, and Services fell by 0.59%.

Meanwhile, Mining and Oil gained a substantial 1.83% due to a potential increase in metal prices, while Property rose by 0.88%, and Holding Firms edged up by 0.02%. Value turnover was slightly above average at PHP6.138 billion, with foreign trades accounting for PHP5.6 billion.

Foreign buying amounted to PHP3.15 billion, while foreign selling hit PHP2.382 billion, resulting in net foreign buying of PHP773 million.

Port operator ICTSI was the most active, with PHP688 million in trades, despite losing a peso to close at PHP404.

Ayala Corp followed with PHP671 million, rising by PHP11 to PHP671. Market bellwether SM Investments was the third most active, declining by PHP5 to PHP965.

There were 125 gainers, 68 losers, and 60 unchanged shares. Analysts predict further market rises as the U.S. Federal Reserve is expected to announce a lower interest rate today (Wednesday), which could boost stocks.

The Bangko Sentral ng Pilipinas is also expected to follow the Fed’s lead, with a further drop in interest rates signaled by the recent decline in the inflation rate. The index hit a high of 7,219.17 points but dropped to a low of 7,143.82 points as trading progressed.

Among the gainers were Ayala Land, Universal Robina, Security Bank, Global Estate, Megawide, Alternergy, First Holdings, SMC Food and Beverage, Aboitiz Equity, Citicore RT, Philweb, and GMA-7, Belle Corp.

Also ending the day in the green were Bloomberry, Global Ferronickel, Robinsons Land, DMC Holdings, CEMEX Holdings, Roxas and Co, Axelum, Semirara Mining, PNB, Union Bank, ACEN Corp., Aboitiz Power, Jollibee Foods, Cosco Capital, Megaworld, Boulevard Holdings, Puregold, OceanaGold, Nickel Asia, and Synergy Grid.

The losers included Bank of PI, SM Prime, BDO Unibank, DigiPlus, Figaro Coffee, Metrobank, Shakey's Pizza, Abacore, LT Group, AREIT, Shang Properties, MacroAsia, GT Capital, JG Summit, Globe Telecom, PLDT, Metrobank, Meralco, Manila Water, SPNEC, Apex Mining, Philex Mining, and Monde Nissin.

Basic Energy, Petron, Citicore RE, D&L Industries, Dito CME, and Philodrill closed the trading day unchanged.