Stock Market



By Keith Richard D. Mariano,
Reporter


PSEi snaps 5-day losses on bargain hunting




Posted on January 19, 2017


THE LOCAL MARKET bounced back from a five-day decline, as investors hunted for bargains despite the lingering uncertainties over the leadership change in the United States and the looming departure of the United Kingdom from the European Union (EU).

The bellwether Philippine Stock Exchange index (PSEi) recovered 33.03 points or 0.46% to 7,156.36, while the broader all shares gained 16.93 points or 0.39% to 4,321.58.

The PSEi traded above its previous finish of 7,123.33 during the session that nevertheless remained volatile. The index opened at 7,136.15, touched its intraday low of 7,129.89 and peaked at 7,165.15 only within the first hour of trading.

“[Tuesday’s trading] was some sort of capitulation, if I may say, because it was just too much. So, some investors tend to look for bargains and decided to buy amid the oversold situation,” Aniceto K. Pangan, trader at Diversified Securities, Inc., said in a telephone interview.

The PSEi ended in the negative territory for the past five consecutive sessions, erasing more than a quarter of the 523.7 points gained during the first six days of this year’s trading.

In the previous two sessions, the main index suffered from investors’ positioning ahead of the inauguration of billionaire Donald J. Trump as US President and in the middle of renewed concerns over Britain’s exit from the EU single market.

“Emotions, we think, will now be tempered and hopefully balanced as we take stock of the unfolding realities -- Theresa May of Britain has just announced what sounds like a hard ‘Brexit’ underscored by ‘no deal is better than a bad deal’,” Justino B. Calaycay, Jr., head of marketing and research at A&A Securities, Inc., noted in a trading post for Wednesday.

The local market tracked the performance of peers in the region, which according to news service Reuters traded higher when investors picked up exporter shares after Mr. Trump expressed concerns over the dollar’s strength keeping the US from competing with China.

All counters ended in the green, except for the industrial stocks that dropped 41.12 points or 0.37% to 10.963.13 after share prices in heavyweight Jollibee Foods Corp. and Universal Robina Corp. lost 1.36% to P203.00 and 1.42% to P166.60, respectively.

Advancers edged out decliners, 86 to 85, while 55 stocks were unchanged.

Value turnover dropped to P4.98 billion, after 1.53 billion issues changed hands.

The session, however, saw foreign investors switch to a buying position, registering P27.53 million in net purchases to reverse Tuesday’s net sales of P311.99 million.

While it remains among the best performing in emerging Asia, the Philippines, Diversified Securities’ Mr. Pangan said, will continue to experience volatility until investors can decipher the economic policy direction of Mr. Trump’s administration as well as the impact of Britain’s exit from the EU.