Last-minute buying supports PSEi

Last-minute buying in blue chip stocks ahead of the central bank’s policy meeting kept the benchmark Philippine Stock Exchange index (PSEi) from caving in on Wednesday, but the market at large traded on a weak note.

The PSEi gained 2.30 points or 0.03% to 7,896.24 at the closing bell. The broader All Shares shed 0.88 points or 0.02% to 4,770.09.

“Here at the PSE, we had a super volatile day as the main index was down more than 1% in the morning session. It then recovered all its losses to end the day in the green, up 0.03%,” AAA Equities head of research Chris Mangun said.

The local market along with Asian stocks traded on a weak note after US lawmakers called for an impeachment inquiry into President Donald Trump, increasing the prospects of prolonged political uncertainty in the world’s largest economy.

“The complete 360-degree reversal today came as minor gains in large cap index issues SMPH (SM Prime Holdings), SM (SM Investments Corp.), and AC (Ayala Corp) ... Investors may be positioning themselves in the larger cap companies as they stand to benefit more from lower interest rates,” Mangun said.

“Investors are expecting the Bangko Sentral ng Pilipinas (BSP) to reduce interest rates in their next policy meeting before the end of the week,” he said.

The BSP's policy-setting Monetary Board is scheduled to have its sixth meeting for the year on Sept. 26.

Foreign funds bought P2.777 billion of shares and sold P3.087 billion for a net selling position of P309.580 million.

More than 617.197 million shares valued at P5.784 billion, changed hands. Decliners led advancers, 145 to 59, and 48 issues were unchanged. —VDS, GMA News