PHL shares up a bit, local players fuel gains

Philippine shares closed slightly higher Wednesday, helped by trading in second-tier issues as the market sought a more definitive direction from markets abroad. The main Philippine Stock Exchange index advanced 10.44 points or 0.25 percent, ending the session at 4,119.71, according to the PSE online Market Information as of 1 p.m. More than 5.337 billion shares valued P3.250 billion were traded during the session. Advancers led decliners 91 to 51, while 31 issues were unchanged. “For the index stocks, we are waiting for a more clearer direction from markets overseas," Joseph Y. Roxas, president of Eagle Equities Inc., told GMA News Online. “That is because that’s were the foreign money is going," he added. The broker noted that local players are that ones now trading second-tier stocks, reflecting the view that foreign fund managers are currently cashing in on gains “because of the general market turmoil." Roxas’ view also echoed the sentiment of foreign fund managers that there is renewed bearish trend in markets all over the world these days. According to a Reuters report on Wednesday’s decline of Asian markets, “the recent gains were largely a technical rebound from last month’s sell-off." Most of the trading in Asia “is short covering and fast money. There are no fund inflows into Asia and at this point no issuer can come to the market, the Reuters report added. Despite such bearish sentiment now influencing the markets, Eagle Equities’ Roxas said “the money of foreign fund managers is there… so it will come back." While October is usually a market low, Roxas said, “I think we’ve seen the lows for the year… for the Philippines it’s 3,800" in terms of the main PSEi. — OMG, GMA News Online