Shares end higher as market hunts for bargains

By Arra B. Francia, Senior Reporter

SHARES firmed up on Wednesday as investors continued their bargain hunting after the heavy sell-off seen in the previous week.

The Philippine Stock Exchange index (PSEi) jumped 1.21% or 93.51 points to 7,815.07, extending gains for the fourth straight session. The broader all-shares index likewise climbed 0.83% or 39.71 points to 4,821.85.

“This is still due to investors taking positions out of the selling streak from May 9 to 16. The sell-off may have been overdone given that our company fundamentals remain sound, which is why investors especially local ones, are coming back causing the four-day rally,” Philstocks Financial, Inc. Research Associate Japhet Louis O. Tantiangco said in a text message.

Mr. Tantiangco said first-quarter net income of index-member firms went up 8.71% to P140.04 billion on the back of a 10.89% increase in revenues to P1.287 trillion.

Papa Securities Corp. Sales Associate Gabriel Jose F. Perez noted how several index heavyweights posted strong gains.

“Ayala Corp. (+6.5%) had the highest gain of the day after news early on in the day about AC buying back its shares from Mitsubishi. JG Summit Holdings, Inc, (+4.3%), and Aboitiz Equity Ventures, Inc. (+4.0%) followed,” Mr. Perez said in an e-mail.

The PSEi also got a boost from positive sentiment in Wall Street overnight after the US Commerce department on Tuesday granted Chinese tech giant Huawei Technologies Co. Ltd. a temporary license to buy American goods, which will allow the firm’s smartphones to still receive Android software updates. This will minimize disruption for its customers.

This led to a rally in tech shares on Wall Street. The Dow Jones Industrial Average advanced 0.77% or 197.43 points to 25,877.33. The S&P 500 index rose 0.85% or 24.13 points to 2,864.36, while the Nasdaq Composite index was up 1.08% or 83.35 points to 7,785.72.

Meanwhile, Asian indices were mixed as investors digested how Washington’s temporary reprieve for Huawei will affect the company, even as Huawei founder Ren Zhengfei called the reprieve “meaningless” because it has already “prepared for the worst.”

Back home, mining and oil was the lone counter that dropped, ending 1.1% or 80.98 points lower at 7,228.88. The rest were in positive territory, led by holding firms which soared 2.78% or 200.89 points to 7,416.26. Services edged higher by 0.47% or 7.84 points to 1,661.66; industrials added 0.44% or 50.92 points to 11,397.19; property was up 0.37% or 15.71 points to 4,211.73; while financials gained 0.19% or 3.38 points to 1,726.99.

Turnover rose to P10.14 billion — almost double Tuesday’s P5.41 billion — after some 850.19 million issues switched hands.

Net foreign outflows, however, ballooned to P3.52 billion versus the previous session’s P327.80 million.

Advancers outpaced decliners, 112 to 78, while 43 names were unchanged.