The Philippine Stock Exchange index (PSEi) rebounded on Wednesday, reaching the 6,300 level as investor sentiment improved following positive cues from overseas markets. The PSEi rose by 0.74% or 46.48 points to close at 6,302.50, with the broader all shares index increasing by 0.54% or 18.51 points to end at 3,398.45.
This was an over four-month high and marked the PSEi's best close since March 6's 6,320.41. Market sentiment improved with bargain hunting lifting the local bourse, as buying interest reemerged with investors selectively accumulating blue-chip stocks following the recent pullback. Trading remained thin, however.
The rebound was also supported by improved risk appetite tracking global markets, as global stocks rose and bonds steadied on Wednesday. The recent surprise slowdown in US inflation scaled back expectations for interest rate hikes, easing worries over the Federal Reserve's policy outlook.
US consumer inflation slowed more than expected in June, with energy prices retreating. However, the moderation was insufficient to convince financial markets to take an interest rate increase from the US Federal Reserve off the table. The Fed is expected to keep its benchmark overnight interest rate unchanged this month.
Back home, majority of sector counters closed higher on Wednesday. Financials rose by 1.13% or 21.54 points to 1,922.91; services increased by 0.66% or 23.05 points to 3,467.64; property went up by 0.58% or 11 points to 1,891.86; industrials climbed by 0.48% or 39.97 points to 8,338.09; and holding firms advanced by 0.35% or 15.49 points to 4,356.82.
Advancers outnumbered decliners, 96 to 88, while 63 names were unchanged. Value turnover decreased to P4.31 billion on Wednesday, with 620.68 million shares traded. Net foreign buying rose to P280.04 million from P229.80 million in the previous session.
