Stock Market

By Keith Richard D. Mariano, Reporter

PSEi rebounds as investors hunt for cheap buys

Posted on September 09, 2016

LOCAL STOCKS crawled out of the doldrums on Thursday as investors hunted for bargains as soon as the benchmark breached the 7,500 level, although foreign players continued to abandon their shareholdings.

The Philippine Stock Exchange index (PSEi) made up of 30 of the largest stocks advanced 47.97 points or 0.63% to 7,667.07 despite generally weaker performances across Asia.

The all-shares gauge likewise climbed 23.18 points or 0.51% to reach 4,565.53 at the closing bell.

The PSEi extended its decline early into the session, opening at 7,588.78 and touching a low of 7,536.07 within the first hour of trading. The bellwether started its ascent thereafter and reached as high as 7,667.62.

The local market oversold during the session amid the lack of “bad news” that would have pulled local stocks further south, UPCC Securities, Inc. equity trader Aristotle D. Reyes, Jr. said in a telephone interview.

“We reached the support level, so normally the market will rebound. Also, the meeting of President Rodrigo R. Duterte with US President Barack H. Obama and United Nations Secretary General Ban Ki-moon was reported have went well,” Mr. Reyes noted.

In a market update, DA Market Securities, Inc. also noted the PSEi managed to return to the positive territory “as stocks got overcooked.”

But mining and oil stocks bucked the uptrend, retreating 13.68 points or 0.13% to 10,681.85. The sector continues to trade within range amid uncertainties over the government’s policy on mining, Mr. Reyes said.

Services gained the most, adding 17.10 points or 1.10% to settle at 1,565.47. Financials rose by 15.38 points or 0.85% to reach 1,829.15; industrial by 63.44 points or 0.54% to 11,843.85; holding firms by 36.76 points or 0.49% to 7,544.35; and property by 12.48 points or 0.37% to 3,406.66.

“Amid surplus liquidity in global financial markets, foreign and domestic funds await discounts in Philippine stocks,” DA Market noted, as foreign investors posted P2.16 billion in net sales in addition from the P2.68 billion withdrawn on Wednesday.

UPCC Securities’ Mr. Reyes also deemed the market’s rebound “not quite convincing” as trade volume remained thin. The session saw 1.35 billion shares exchange hands for P8.99 billion versus the 2.14 billion issues on Wednesday worth P10.27 billion.

Mr. Reyes, however, expects local stocks to extend their gains because the 7,500-7,600 levels continue to serve a case for investors to buy back. “We expect to continue to go up but let’s see. Somehow, we are following the markets abroad, so if they’re up, then we’re up as well.”

In contrast, most Southeast Asian stocks were trading largely lower on Thursday, as investors waited for clarity on further easing steps when the European Central Bank meets later in the day. -- with Reuters