Local shares bounced back on Wednesday, March 7, snapping its five-day losing streak as optimism on investment opportunities in the Philippines renewed investor sentiment.

The 30-company Philippine Stock Exchange index climbed 0.53% or 44.47 points to close at 8,404.69, recovering in time for closing bell amid mostly trading in negative territory during the day. The broader all-shares index also rose 0.44% or 22.15 points to 5,055.87.

“It’s more of a rebound after the market has been oversold for the five trading sessions. The market rebounded as the finding shows that Philippines is still one of the best investment dispatches in the global market, considering the infrastructure program it’s going to implement,” Diversified Securities, Inc. Equities trader Aniceto K. Pangan said in a phone interview yesterday.

Financial news site Business Insider recently ranked the Philippines as the best country to invest in this year, which Department of Finance Secretary Carlos G. Dominguez said is due to fiscal reforms set out by the government.

Net foreign outflows slowed on Wednesday, down to P295.89 million against the P737.18 million in the previous session.

“But with the foreign selling, I still believe that market is still on the consolidation stage, especially after the result of inflation going beyond the target. It’s still on the high side of the range,” Mr. Pangan said.

February inflation stood at 4.5% based on the 2006 prices, toward the higher end of the local central bank’s revised target of 4-4.8%. Using the rebased index under 2012 prices, inflation rose by 3.9% in February, just within the 2-4% target.

The analyst noted the main index will continue consolidating, with the next support level at 8,270. — Arra B. Francia

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