Bargain hunters keep PSEi at 6,000 amid gloom
By Denise A. Valdez, Reporter
THE MAIN INDEX sank on Thursday, hitting the 5,900 level intraday before recovering at the close on last-minute bargain hunting.
The bellwether Philippine Stock Exchange index (PSEi) ended Thursday’s session at 6,029.01, down 35.25 points or 0.58% from a day ago. The broader all shares index lost 29.07 points or 0.81% to 3,540.02.
The PSEi opened at its intraday high of 6,076.9 and fell to as low as 5,915.83 during the session before returning to the 6,000 level to close at 6,029.01.
“Local shares closed lower once again after news on the closure of the Chinese consulate in Houston, which fuelled worries about US-China relations. However, some last-minute bargain hunting pushed the market above 6,000 due to optimism over the likelihood for a new spending bill and potential coronavirus vaccines,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.
The US government ordered the suspension of operations of the Chinese consulate in Houston on Thursday following long-running tensions between the two countries.
In a report from CNN, the US State department was quoted as alleging China to be engaged in “massive illegal spying and influence operations,” but not specifying what triggered the closure order.
As was the case over the past couple of years since the US and China started arguing over its trade relations, many global equities were in red territory when the local market closed on Thursday.
However, bargain hunters kept the PSEi within the 6,000 level despite the gloom in global markets.
“After several days on the sidelines, buyers decided to scoop up shares of blue chips that have been sold off heavily early in the week,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.
He added that the government’s order to public hospitals to increase allocation for coronavirus disease 2019 (COVID-19) patients helped offset negative investor sentiment.
At the end of Thursday’s session, industrials dropped 121.42 points or 1.64% to 7,282.10; mining and oil shed 73.21 points or 1.42% to 5,056.41; services trimmed 19.43 points or 1.36% to 1,401.06; and holding firms shaved off 64.68 points or 1.01% to 6,290.54.
Two indices gained: financials by 2.46 points or 0.2% to 1,181.80 and property by 4.40 points or 0.14% to 2,971.53.
Value turnover dipped to P4.27 billion with 1.61 billion issues switching hands from the previous day’s P4.50 billion with 3.01 billion issues.
Decliners numbered thrice as much as advancers, 150 against 50, while 36 names ended unchanged.
Foreign investors remained sellers, with net outflows growing to P710.59 million on Thursday from the P393.11 million on Wednesday.
