Stocks edge higher after Fed chair’s ‘dovish’ remarks

By Arra B. Francia, Reporter
Shares advanced on Wednesday, July 18, boosted by the positive performance of international markets after United States Federal Reserve Chairman Jerome Powell hinted at more flexible changes in monetary policy.
The bellwether Philippine Stock Exchange index (PSEi) jumped 0.94% or 69.69 points to 7,451.37, finally breaking past the 7,400 resistance this week. The broader all shares index also climbed 0.61% or 27.13 points to 4,492.51.
“Regional news pushed the PSEi however as activity focused on the dovish statement from Powell and strong US macro data,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile phone message.
Investors welcomed the Fed Chair’s statement on Tuesday that the US Central Bank will be implementing rate hikes gradually to keep inflation near target, depending on current market conditions.
With this, the Dow Jones Industrial Average rallied 0.22% or 55.53 points to 25,119.89. The S&P 500 index advanced 0.4% or 11.12 points to 2,809.55, while the Nasdaq Composite Index firmed up 0.63% or 49.40 points to 7,855.12.
Most Asian indices also went up on Wednesday, influenced by Wall Street’s advance.
All sectoral indices moved to positive territory, led by the property sector which gained 1.36% or 48.83 points to 3,644.98. Holding firms rose 1.07% or 77.06 points to 7,307.31; mining and oil climbed 0.85% or 81.67 points to 9,740.29; financials went up 0.65% or 11.77 points to 1,834.97; services added 0.52% or 7.53 points to 1,450.76; while industrial rallied 0.33% or 35 points to 10,550.49.
Turnover picked up to P4.25 billion on Wednesday after some 1.24 billion issues switched hands, versus the P3.50 billion recorded in the previous session.
Gainers outpaced losers, 108 to 76, while 52 issues remained unchanged.
Foreign investors turned buyers, snapping their nine-day selling streak as net foreign inflows reached P203.79 million, versus net sales of P481.06 million in the previous session.
Thirteen of the 20 most actively traded stocks advanced, led by Ayala Land, Inc.’s 2.94% uptick to P38.50, followed by SM Investments Corp.’s 1.11% increase to P910. SSI Group, Inc. was also among the day’s gainers, after announcing on Wednesday that it will be bringing the New York-based burger joint Shake Shack to the country by 2019.
The same list showed five losers, with Metropolitan Bank & Trust Company slipping 0.36% to P69.75 and Megawide Construction Corp. dropping 6.59% to P17.