SHARE prices halted a three-day run of declines on Wednesday, as investors sought bargains as global markets provided cause for optimism overnight.
The Philippine Stock Exchange index (PSEi) gained 0.90% or 69.74 points to close at 7,793.13 yesterday, bouncing back from its 100-point decline in the previous trading session. The broader all-shares index also firmed up 0.52% or 24.62 points to end at 4,720.58.
“Technical indicators such as a Bullish Divergence with RSI (relative strength index) as well as optimism from US markets last night from strong first-quarter corporate earnings signaled the possible comeback of the index today. And true enough, the index gained as much as 105 points before (giving up much of its gains to close at) 7,793.13,” Papa Securities Corp. trader Gabriel F. Perez said in an e-mail.
Earnings reports boosted Wall Street’s performance on Tuesday, with the Dow Jones Industrial Average closing 0.87% higher or 213.59 points to 24,786.63. The S&P 500 index jumped 1.07% or 28.55 points to 2,706.39, while the Nasdaq Composite Index climbed 1.74% or 124.81 points to 7,281.10.
“(The PSEi) probably just moving in line with United States markets last night. Could also be due to bargain hunting given yesterday’s move,” China Bank Securities Corp. Research Director Garie Ouano said via text.
Most Asian indices followed suit, also trading on a positive note on Wednesday.
Four sectoral indices stayed in positive territory, led by property which added 1.46% or 52.32 points to 3,619.70. Industrials rose 1.14% or 126.13 points to 11,178.63; financials grew 1.11% or 22.04 points to 1,997.31; while holding firms closed 0.26% higher or 20.29 points at 7,747.10.
On the other hand, mining and oil lost 1.35% or 147.05 points to 10,717.66, while services gave up 0.13% or 2.14 points to 1,587.20.
Some 1.1 billion shares changed hands, resulting to a value turnover of P7.31 billion, slightly higher than Tuesday’s P7.03 billion.
Decliners narrowly beat advancers, 107 to 103, while 40 were unchanged.
Papa Securities’ Mr. Perez noted that net purchases by foreigners amounted to P443.24 million. This was a reversal of the P453.85 million worth of net sales on Tuesday.
“Notably, ALI (Ayala Land, Inc.) had the highest net foreign buying figure of the day of P156.6M,” Mr. Perez said.
Index heavyweight Universal Robina Corp. led the index higher, as the stock gained 2.64% to close at P140. ALI also gained 3.14% to P41, while BDO Unibank, Inc. added 3.01% to P137. — Arra B. Francia