Share prices on Thursday closed little changed with a slight positive bias after cautious bargain hunting, backed by hope for a US Fed rate cut later this month.
Luis Limlingan, managing director at Regina Capital and Development Corp., described the PSEi’s performance as “flat” and noted that investors awaited key catalysts for a more decisive move.
He pointed out that weak trading volumes suggest that sentiment remained cautious, even as lower bond yields provided some support.
The benchmark Philippine Stock Exchange index (PSEi) gained 0.11 percent or 6.8 points to close at 6,126.89. The broader All Shares gained 0.01 percent to 3,691.73. Losers narrowly edged out gainers, but foreign funds were net buyers, with P150.61 million in net purchases.
Japhet Tantiangco, research manager at Philstocks Financial Inc., said investors were encouraged to engage in bargain hunting following news of a 0.1 percent deflation in the US as of August.
That is taken as an affirmation of the case for a US Federal Reserve rate cut in September, which would be a positive signal for global markets.
Meanwhile, Michael Ricafort, chief economist at Rizal Commercial Banking Corp., noted that the PSEi’s gains were also supported by continued record highs on Wall Street.
