STOCKS firmed on Tuesday, tracking the recovery of global markets that began to show signs of stability after consecutive losses in previous weeks.
The all-shares index also edged higher by 0.54% or 27.31 points to 5,053.21.
“Philippine markets saw a bit of reprieve today from the selling pressure experienced this month, but this was on the back of weaker trading volumes as the CNY (Chinese New Year) holiday gets under way,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile phone message on Tuesday.
The local barometer moved in pace with global markets. On Monday, the Dow Jones Industrial Average picked up 1.7% or 410.37 points to 24,601.27. The Nasdaq Composite Index inched up 1.56% or 107.46 points to 6,981.96, while the S&P 500 was up 1.39% or 36.45 points to 2,656.
“Regional equity rally boosted sentiment in the local front. Also, bargain hunting on index heavyweights SM Prime Holdings, Inc. (SMPH) and JG Summit Holdings, Inc. (JGS) which were battered in the past few sessions lifted the market,” RCBC Securities, Inc. equity analyst Jeffrey Lucero said in a text message.
SMPH recorded a 3.29% increase to P36.15 apiece yesterday, and was also the second most actively traded stock. JGS, meanwhile, added 2.6% or P1.90 to end the day at P74.90 each.
Regina Capital’s Mr. Limlingan added that investors have started re-entering markets on a bargain-hunting mode after seeing signs of stability in markets in the United States.
Southeast Asian stock markets edged higher on Tuesday tracking Wall Street which extended gains after its worst week in two years and as bargain hunters stepped in to buy battered down stocks.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up more than 1%.
Back home, most sectoral counters went up on Tuesday, led by property, which posted a 1.46% or 55.75-point increase to 3,868.60. Holding firms climbed 1.17% or 101.17 points to 8,708.78; mining and oil was up 0.99% or 112.32 points to 11,396.77; services rose 0.86% or 14.70 points to 1,706.91; while financials added 0.32% or 7.12 points to 2,206.01.
Industrials was the lone losing counter as it closed 0.63% or 72.99 points lower to 11,397.63.
Around 1.82 billion issues valued at P7.66 billion switched hands, higher than the P5.86 billion worth traded last Monday.
While the main index was up, declining stocks still outpaced those that advanced, 110 to 96, while 48 names were flat.
Foreigners maintained a selling position on Tuesday as net outflows stood at P841.65 million, although lower than Monday’s P1.27 billion. — Arra B. Francia with Reuters