By Arra B. Francia, Reporter
LOCAL SHARES bounced back on Wednesday as investors turned bargain hunters after enduring losses for most of last week.
The benchmark Philippine Stock Exchange index (PSEi) soared 1.96% or 150.72 points to close at 7,821.34, recovering from the previous session’s flat performance. The broader all-shares index likewise climbed 1.43% or 68.17 points to 4,809.07.
“The market move is a result of the technical bounce coming from the losses from last week’s trade validating the 7,600 support line,” Philstocks Financial, Inc. Research Associate Piper Chaucer E. Tan said in a text message.
Mr. Tan added that the release of corporate earnings has supported optimism among investors. So far, conglomerates such as SM Investments Corp. and Metro Pacific Investments Corp. have already released their 2018 earnings results, posting profit increases of 13% and seven percent, respectively.
“In line with that, corporate earnings is somehow helping the index regain momentum and foreign buying is present, signaling bargain hunting for investors,” Mr. Tan said.
Foreign investors turned buyers on Wednesday, recording net inflows of P272.89 million versus the previous session’s net sales worth P1.28 billion.
The PSEi bucked the negative sentiment in Wall Street on Tuesday, as the Dow Jones Industrial Average slipped 0.05% or 13.02 points to 25,806.63. The S&P 500 index dropped 0.11% or 3.16 points to 2,789.65, while the Nasdaq Composite index was flat with a meager loss of 0.02% or 1.21 points to 7,576.36.
“Philippine investors became bargain hunters as investors looked beyond US-China trade talks for further catalysts to trade on,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message.
Investors overseas continue to wait for signals on how the US-China trade talks will fare, as reports pointed to a trade deal nearing completion. The two parties are seen to sign a trade deal at a summit by March 27.
Most Southeast Asian stocks were muted on Wednesday, in line with their broader Asian peers, as investors awaited details on progress in the US-China trade negotiations.
All sectoral indices moved to positive territory back home, led by property which jumped 2.41% or 94.45 points to 4,002.19. Industrials followed with a 1.67% gain or 190.27 points to 11,547.40, while financials rose 1.65% or 28.12 points to 1,732.77.
Holding firms rallied 1.61% or 124.79 points to 7,848.76; services went up 1.18% or 18.12 points to 1,554.22; while mining and oil added 0.47% or 38.65 points to 8,126.70.
Some 1.53 billion issues switched hands valued at P6.01 billion, down from Tuesday’s P6.62-billion turnover.
Advancers outpaced decliners, 113 to 88, while 38 issues remained unchanged.