LOCAL SHARES were able to recover on Tuesday after six straight days of decline due to bargain hunters taking center stage.

The 30-member Philippine Stock Exchange index (PSEi) loaded up 89.87 points or 1.25% to close at 7,226.90 yesterday, while the broader all shares index gained 37.06 points or 0.87% to 4,293.89.

“The market ended six consecutive days of losses by rebounding 1.26% as bargain hunters positioned in the market…,” Philstocks Financial, Inc. Research Associate Claire T. Alviar said in a text message yesterday.

She said after massive selling in the past days, investors “found it as an opportunity to put fundamentally sound companies in their portfolio at a bargain price.”

“The rally was also supported by the improvement of Philippine manufacturing PMI (purchasing managers’ index) in January at 52.1 from 51.7 in December last year,” Ms. Alviar added.

For Regina Capital Development Corp. Head of Sales Luis A. Limlingan, the market’s rally was also affected by subsiding worries on the novel coronavirus.

“The market recovered slightly as investor woes regarding the coronavirus started to simmer down,” Mr. Limlingan said in a mobile message.

Hong Kong reported its first death from the newly identified coronavirus on Tuesday, the second fatality outside mainland China from an outbreak that has killed over 420 people, spread around the world and raised fears for global economic growth.

The total number of infections in China rose by 3,235 to 20,438, and there were at least 151 cases in 23 other countries and regions.

Like the PSEi, other Asian also started recovering yesterday. Japan’s Nikkei 225 and Topix indices both climbed 0.49% and 0.69% respectively, Hong Kong’s Hang Seng index rose 1.21% and South Korea’s Kospi index increased 1.84%.

Even China’s Shanghai Shenzhen CSI 300 and Shanghai SE Composite indices advanced yesterday, jumping 2.64% and 1.34%, respectively.

Back home, most sub-sectors at the PSE also closed higher on Tuesday. Financials gained 35.49 points or 2.10% to 1,724.30; industrials added 156.15 points or 1.74% to 9,122.37; holding firms picked up 84.07 points or 1.22% to 6,958.81; services increased 8.50 points or 0.57% to 1,477.82; and property climbed 5.79 points or 0.15% to 3,799.01.

The sole loser was mining and oil, which dropped 44.43 points or 0.60% to 7,286.68.

Some 1.48 billion issues worth P9.61 billion switched hands yesterday, up from the 833.35 million issues valued at P5.87 billion in the previous session. Philstocks Financial’s Ms. Alviar noted this is also higher that the year-to-date average value turnover of around P6 billion.

More stocks increased than declined yesterday, 113 against 73, while 48 names ended unchanged.

Foreign investors, however, were still sellers, with net outflows ballooning to P2.23 billion yesterday from the P289.06 million seen on Monday. — Denise A. Valdez with Reuters

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