PSEi rises on Wall Street gains, fuel tax hopes
PHILIPPINE SHARES climbed on Wednesday as bargain-hunters drew support from a rebound on Wall Street and optimism over potential policy changes on fuel excise taxes.
The benchmark Philippine Stock Exchange Index (PSEi) rose 0.48% or 29.44 points, closing at 6,055.45, while the broader all-share index added 0.41% or 13.81 points to 3,363.56.
“Investors took cues from the strong rebound in US equities amid developments in the Iran conflict,” Wendy B. Estacio-Cruz, research head at Unicapital Securities, Inc., said in a Viber message.
Market participants were also watching local policy developments. The House of Representatives on Monday approved House Bill No. 8418, which seeks to grant the President authority to suspend or cut fuel excise taxes during national and global emergencies.
Its counterpart at the Senate was still under discussion. The bills differ in duration and automatic triggers: the Senate limits powers to three months with an automatic reversion if Dubai crude prices fall below $80 per barrel, while the House version allows a six-month suspension without a price safeguard.
Sectoral performance was mixed. Four of six sectoral indexes closed higher. Property led gains, rising 1.74%, followed by industrials up 1.19%, holding firms advancing 0.67% and services edging up 0.23%. Meanwhile, financials fell 0.38% and mining and oil slipped 0.22%.
Winners beat losers 113 to 81, with 61 stocks unchanged.
Trading activity eased, with value turnover down to P6.06 billion on 930.22 million shares from P7.44 billion on 1.06 billion shares a day earlier.
Net foreign selling increased to P664.05 million from P563.22 million in the previous session.
Analysts said the market remains sensitive to external and domestic catalysts, including geopolitical developments, crude oil prices and legislative actions that could affect corporate costs and inflation.
The combination of bargain-hunting, Wall Street momentum and hopes for a fuel excise tax cut supported local equities, Japhet Louis O. Tantiangco, research manager at Philstocks Financial, Inc., said via Viber.
“The local market extended its gains as investors continued with their bargain-hunting, taking cues from Wall Street’s overnight rise,” he added.
Investors will continue monitoring the Senate’s deliberations on the fuel excise bill, alongside external cues from oil markets and US equities, which are likely to guide near-term trading in the PSE. — Alexandria Grace C. Magno
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