PHILIPPINE shares continued to rally on Wednesday following positive earnings reports from companies, but analysts said the market could consolidate as the week comes to an end.
The Philippine Stock Exchange index (PSEi) gained 25.15 points or 0.38% on Wednesday to close at 6,585.21, while the all shares index went up by 18.77 points or 0.46% to end at 4,059.59.
“Philippine shares traded slightly up after the new string of positive corporate earnings results overshadowed investor concerns over the coronavirus and Chinese regulatory action against technology stocks,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Property firm Megaworld Corp. said it recorded a net attributable income worth P2.6 billion in the second quarter, up by 39% from last year’s P1.9 billion.
SM Investments Corp. also saw its net income surge to P20.1 billion in the first semester, nearly a threefold improvement from the P7.1-billion profit booked in the same period last year.
Meanwhile, Metro Pacific Investments Corp. recorded an 82% growth in core net income for the quarter to P3.5 billion from P1.9 billion year on year.
On the other hand, shares in US and European-listed gaming companies fell on Tuesday after a steep sell-off in China’s social media and video games group Tencent driven by fears the sector could be next in regulators’ crosshairs, Reuters reported.
The slide in European and US gaming stocks followed a tumble in Tencent, down more than 10% at one point in Hong Kong in a decline that wiped off almost $60 billion from its market capitalization, after a Chinese state media outlet branded online video games “spiritual opium.”
“[A] follow-through buying on attractive valuation lifted the market but gains are losing steam and likely set to go on consolidation mode tomorrow and until [the] weekend,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a separate Viber message.
Majority of sectoral indices posted gains on Wednesday except for property, which inched down by 3.36 points or 0.1% to finish at 3,078.05.
Meanwhile, services climbed 29.10 points or 1.85% to 1,595.29; mining and oil rose 84.21 points or 0.86% to 9,840.62; financials increased by 10.98 points or 0.76% to 1,438.99; industrials went up 34.44 points or 0.37% to close at 9,262.94; and holding firms inched up by 3.70 points or 0.05% to 6,555.32.
Value turnover inched down to P4.64 billion with 1.10 billion issues traded on Wednesday, from the P4.89 billion with 799.68 million issues switched hands the previous day.
Advancers beat decliners, 115 against 73, while 46 names closed unchanged.
Net foreign buying decreased to P83.72 million yesterday from the P108.49 million logged on Tuesday. — K.C.G. Valmonte with Reuters