LOCAL SHARES bounced back on Tuesday as index heavyweights reported positive performances for the first quarter, prompting investors to go bargain hunting.
The bellwether Philippine Stock Exchange index (PSEi) climbed 0.58% or 44.29 points to close at 7,577.57 yesterday. The broader all-shares index likewise rose 0.60% or 27.72 points to 4,629.33.
“SM Prime Holdings, Inc. and Ayala Land, Inc. (ALI) reported double-digit [income] growth. These issues manifested a good growth of the consumer as well as property sector, which definitely boosted investor confidence,” Diversified Securities, Inc. equities trader Aniceto K. Pangan said in a phone interview.
SM Prime on Monday said its net income grew by 15% to P7.6 billion, driven by its provincial mall expansion.
Shares in the company were among the most actively traded yesterday, jumping 4.79% to P33.90 each.
On the other hand, ALI’s earnings grew 17% to P6.52 billion as it benefited from higher residential sales alongside commercial leasing revenues. ALI’s share price likewise gained 0.25% to close at P40.10 each yesterday.
“Plus most regional markets were up which carried on the investors to bargain hunt on a number of issues helping the market to move up, rebound on today’s trading,” Mr. Pangan said on Tuesday.
Most Asian indices ended in positive territory yesterday, tracking the gains posted in US markets.
Overnight, the Dow Jones Industrial Average went up 0.39% or 94.81 points to 24,357.32. The S&P 500 index rose 0.35% or 9.21 points to 2,672.63, while the Nasdaq Composite index firmed up 0.77% or 55.60 points to 7,265.21.
Back home, the financials sector was the lone sub-index that declined, losing 0.59% or 11.21 points to 1,886.54.
Property surged 2.05% or 72.23 points to 3,582.03. Mining and oil went up 0.68% or 68.55 points to 10,082.93; services gained 0.56% or 8.49 points to 1,524.94; industrials added 0.50% or 54.99 points to 11,054.47; while holding firms closed 0.44% or 33.47 points higher to 7,610.70.
Advancers narrowly outpaced decliners, 98 to 96, while 48 names closed unchanged.
Some 793.39 million issues were traded, resulting in a value turnover of P7.23 billion, higher compared to the P5.90 billion seen on Monday.
Net foreign outflows slimmed to P225.77 million, versus the P462.74-million net sales recorded in the previous session.
Investors are also awaiting the results of the Bangko Sentral ng Pilipinas’ meeting on Thursday, where the body will decide on whether to hike or maintain current monetary policy settings.
“Right now [the market is] just nearly recovering. But we still have to see. Foreign selling will indicate that market has stabilized and maybe start to recover from that point,” Mr. Pangan said. — Arra B. Francia