PHL shares steady after wobbly opening

Philippine shares bounced back in early trading Wednesday cued by gains overnight on Wall Street.

 

The market opened a bit weak and unsure if the support level could hold as "investors are retesting the 7,300-level after a technical rally yesterday," Freya Natividad, analyst at 2TradeAsia.com, told GMA News Online.

 

However, Natividad said the "possibility of a positive trend might be seen later after Wall Street's overnight ascent and the continued support for bond purchases."

 

The main PSEi was up by 9.53 points or 0.13 percent to 7,337.11 as of 10:14 a.m. after opening 13.67 points or 0.19 percent down to 7,313.910.

 

In his daily report, Accord Capital Equities Corp. analyst Justino Calaycay Jr. said "the sustained uptrend, with no impending or immediate signs of a reversal will keep optimism high.

 

"The sustained bias towards easing and provision of or stand-by stimulus among the central banks of the major economies, the low interest rates and contained inflation, positive earnings trends for listed-firms and a generally peaceful conduct of the mid-term polls here at home, had kept equities in favor," he said.

 

According to Reuters, US stocks rose on Tuesday, with the Dow and the S&P 500 closing at new all-time highs as Federal Reserve officials' comments eased some concerns that the central bank could start reducing its stimulus program.

 

The Dow Jones industrial average gained 52.30 points, or 0.34 percent, to end at a record 15,387.58. The Standard & Poor's 500 Index added 2.87 points, or 0.17 percent, to finish at a record 1,669.16. The Nasdaq Composite Index advanced 5.69 points, or 0.16 percent, to close at 3,502.12—its highest close since October 2000. 

 

Also, the Bank of Japan is expected to stand pat on its aggressive monetary stance, but may front-load bond purchases or offer funds via market operations more frequently to help ease recent volatility in bond markets, Reuters noted. — VS, GMA News