PHL stocks climb on inflows due to virus concerns
By Denise A. Valdez, Reporter
PHILIPPINE SHARES advanced on Wednesday to join its regional peers in attracting buyers due to the flight of money away from highly-affected markets of the coronavirus disease 2019 (COVID-19).
The bellwether Philippine Stock Exchange index (PSEi) added 74.05 points or 1.01% to 7,396.94 yesterday, while the broader all shares index picked up 21.11 points or 0.48% to 4,362.09.
Regina Capital Development Corp. Head of Sales Luis A. Limlingan said investors have placed their money in the Philippines amid a decline in US and Chinese markets.
“Some investors have given the country a chance for bargain hunting as new COVID-19 cases in China continued to fall with markets less focus on the outbreak,” Mr. Limlingan said in a mobile message.
The Dow Jones Industrial Average and the S&P 500 indices both closed lower on Tuesday at 0.56% and 0.29%, respectively, while the Nasdaq Composite index inched up 0.02%.
In China, both the Shanghai SE Composite and the CSI 300 indices fell by 0.32% and 0.15%, respectively.
For AAA Southeast Equities, Inc. Research Head Christopher John Mangun, the improvement of the PSEi is also due to some foreign inflows.
“A lack of selling pressure allowed regular buying to take prices of blue-chip issues higher than usual,” Mr. Mangun said in an e-mail. “This may be because we have been seeing foreign inflows in the last couple of days.”
Foreign investors remained buyers on Wednesday with inflows reaching P62.97 million, although lower from Tuesday’s net foreign buying of P187.65 million.
However, Mr. Mangun said most Asian markets gained due to the slight decline in new COVID-19 cases: Japan’s Nikkei 225 and Topix indices improved 0.89% and 0.37%, respectively, as Hong Kong’s Hang Seng index added 0.46% and South Korea’s Kospi index climbed 0.07%.
In Southeast Asia, Bangladesh’s DSE Broad index and Vietnam’s Ho Chi Minh Stock index gained 0.37% and 0.09%, respectively.
“More foreign inflows in the coming days may lift the general sentiment as heavy foreign selling in the last six months has taken a toll on our market. We may see the PSEi test the 7,475 resistance before the end of the week,” Mr. Mangun said.
Sectoral indices at the PSE all improved on Wednesday. Holding firms rose 83.64 points or 1.17% to 7,229.99; services jumped 16.92 points or 1.16% to 1,471.68; industrials went up 103.40 points or 1.15% to 9,061.88; financials rose 9.95 points or 0.57% to 1,737.25; property climbed 18.69 points or 0.47% to 3,946.66; and mining and oil added 26.41 points or 0.37% to 7,103.79.
Some 621.16 million issues valued at P6.49 billion switched hands on Wednesday, higher from Tuesday’s 503.90 million issues worth P5.33 billion.
Advancers outnumbered decliners, 101 against 91, as 48 names ended unchanged.
