By Ed Paolo Salting, Manila Times
THE Philippine Stock Exchange (PSE) went up again on Wednesday by 67.78 points to close at 6,430.08.
Philstocks Financial Inc. research associate Claire Alviar and Rizal Commercial Banking Corp. chief economist Michael Ricafort said good earnings reports from the index members boosted market sentiment.
"Gains from the heavyweight companies, particularly the 3.38-percent income bump of SM Investments Corp., helped lift the PSEi," Alviar said.
Ricafort added that the market also took into account Bangko Sentral ng Pilipinas Governor Felipe Medalla's signal that inflation may have peaked in July 2022 and factored in the policy rate hike of 25 to 50 basis points on Aug. 18, 2022.
Alviar pointed out that since the market has breached its 6,400-resistance level, it will test the sustainability of that benchmark in the coming days. If the market breaks 6,400, the next indicator is 6,600.
In the United States, Regina Capital Development Corp. Managing Director Luis Limlingan said that investors turned away from US markets as House Speaker Nancy Pelosi's controversial visit to Taiwan added to the already tense US-China relations. Stocks also fell further after three Federal Reserve presidents hinted that further rate hikes would be necessary to combat high inflation.
For local catalysts, investors await the release of the PH CPI (Philippine consumer price index) on Friday and continue to be guided by release of additional earnings reports.
Oil prices are on the upward trajectory again. Limlingan said that oil futures edged up ahead of a meeting of OPEC+ producers this week that may not lead to a boost in crude supply amid concerns a possible global recession could limit energy demand. Brent futures rose 51 cents to settle at $100.54 per barrel, while US West Texas Intermediate crude rose 53 cents to $94.42 per barrel.
Market volume was up, with a net value turnover of P6.09 billion, the highest since July 8's P6.27 billion.
