Last-minute buying lifts PSEi

Philippine shares closed in the green on Wednesday, despite trading mostly in red during the session, as investors took positions at the last-minute ahead of the central bank’s policy meeting.

The benchmark PSEi gained 37.16 points or 0.50 percent to close at 7,448.24. The broader All Shares increased by 15.82 points or 0.35 percent to 4,494.55.

“For most of the trading day, the local bourse was in the red due to pessimism caused by the surge in October’s trade deficit and the fall in September’s foreign direct investment net inflows,” Philstocks Financial Inc. research analyst Japhet Luis Tantiangco said.

The country’s balance of trade in goods recorded a $4.212-billion deficit in October, wider than the $2.585-billion deficit in the same month last year. 

On the other hand, the Bangko Sentral ng Pilipinas (BSP) reported foreign direct investments with a net inflow of $569 million in September, down 29.4 percent from $807 million year-on-year. 

“Still, in the end, the PSEi made a comeback as bargain hunters swooped in during the final minutes to take positions,” Tantiangco said.

Last-minute buying was prompted by expectations that the BSP’s policy-setting Monetary Board will keep interest rates unchanged during its meeting on Thursday, December 13.

“The market anticipates the BSP to keep rates steady at 4.75 percent. This is in line with expectations that inflation has already peaked this fourth quarter,” Unicapital Securities Inc. equities trader Christopher San Pedro said.

Foreign funds bought P8.160 billion of shares and sold P9.145 billion for a net selling position of P984.701 million.

More than 990.026 million shares valued at P11.904 billion, changed hands. Advancers led decliners, 98 to 85, and 44 issues were unchanged. —VDS, GMA News