PSEi recovers as investors pick up shares at close
By Arra B. Francia, Senior Reporter
SHARES recovered on Monday as investors bought shares at the close, even as market sentiment remained cautious due to tensions abroad.
The bellwether Philippine Stock Exchange index (PSEi) jumped 1.82% or 142.37 points to close at 7,938.35 yesterday, snapping the market’s two-day decline. The broader all-shares index likewise advanced 1.18% or 56.07 points to 4,797.21.
“Here at the PSE, the main index ends the day up 1.83% on last-minute buying. It had been flat prior to the close. Market sentiment for equities remains very cautious. The relief that we saw may be temporary,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in a statement on Monday.
“Investors may have showed some optimism as we had the first IPO (initial public offering) for the year, ending the day up more than 40%. The upside is still extremely limited until we see investors gain more confidence in our market.”
The market saw the first IPO for the year with the listing of Kepwealth Property Phils, Inc., whose shares soared 41.99% or P2.41 to close at P8.15 each, compared to its offer price of P5.74.
Meanwhile, Regina Capital Development Corp. Head of Sales Luis A. Limlingan attributed the market’s positive performance to the possibility of central banks doing something about a supposed economic slowdown.
“Stocks rallied as a rebound in bond yields eased fears of a recession that sent stocks tumbling earlier in the week. Speculation of more stimulus from both central banks and governments across the world helped prop up the markets,” Mr. Limlingan said in a mobile phone message.
China’s announcement of key interest rate reforms over the weekend has fueled expectations of an imminent reduction in corporate borrowing costs in the struggling economy, boosting share prices on Monday.
Under the new mechanism, bank lending rates will be linked to the loan prime rate, which will be linked to the People’s Bank of China’s medium-term lending facility interest rate.
All sectoral indices moved to positive territory, led by mining and oil which soared 2.71% or 218.92 points to 8,270.11.
Financials climbed 2.49% or 44.43 points to 1,823.72; industrials rose 2.3% or 249.58 points to 11,093.90; holding firms surged 1.49% or 115.20 points to 7,842.20; services firmed up 1.33% or 20.86 points to 1,589.71; while property added 0.71% or 28.97 points to 4,065.94.
Some 1.02 billion issues switched hands valued at P7.02 billion, lower than Friday’s P8.70-billion turnover.
Advancers outpaced decliners, 113 to 72, while 62 names were unchanged.
Foreign investors resumed their selling for a P182.68-million net outflow against the previous session’s net purchases worth P298.69 million. — with Reuters
