By Denise A. Valdez, Senior Reporter
THE MAIN INDEX re-entered the 6,000 level on Tuesday as last-minute bargain hunting caused local shares to rebound from earlier intraday losses.
The benchmark Philippine Stock Exchange index (PSEi) climbed 21.07 points or 0.35% to close at 6,018.21, while the broader all shares index increased 0.89 point or 0.02% to end at 3,591.57.
The index hit a low of 5,947.85 intraday, but started climbing in the latter half of trading to close at its high for the session.
The PSEi’s improvement can be attributed to gains at Wall Street on Monday, which climbed due to investor optimism over the resumption of trials for the coronavirus disease 2019 (COVID-19) vaccine of pharmaceutical firm AstraZeneca Plc, Philstocks Financial, Inc. Research Associate Claire T. Alviar said.
“Last-minute bargain hunting and positive news abroad sent the local bourse above the 6,000 psychological resistance level,” Ms. Alviar said in a text message.
“Overseas, positive performances of the US markets overnight spilled over in the bourse… Meanwhile, the growth of China’s retail sales in August, up by 0.5% year-on-year, spurred optimism as this was the first positive report for the year, pointing towards the recovery of the economy,” she added.
The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite indices gained 1.18%, 1.27% and 1.87%, respectively, on Monday.
However, the PSEi’s gains were tempered due to declines in select stocks, AAA Southeast Equities, Inc. Research Head Christopher John Mangun said.
“[G]ains in large-cap issues were mostly offset by losses in pandemic high-flyers, the telcos and retail/consumer focused stocks, which have been sold off in the last few days as investors reposition themselves,” he said in an email. “This trend may continue till the end of the week. The market’s current movement may be the calm before the storm as the economy continues to bounce back.”
Four of six sectoral indices ended Tuesday’s session with below-1% gains. Holding firms climbed 61.65 points or 0.98% to 6,313.41; financials picked up 6.84 points or 0.59% to 1,152.93; mining and oil added 26.16 points or 0.43% to 6,092.51; and property improved 7.41 points or 0.26% to 2,799.30.
Meanwhile, services dropped 22.05 points or 1.48% to 1,461.48, while industrials shed 8.64 points or 0.10% to 8,025.66 at the end of session.
Some 829.03 million issues valued at P5.55 billion switched hands on Tuesday, down from the previous day’s 1.13 billion issues worth P4.71 billion.
Decliners outnumbered advancers, 113 against 78, while 51 names ended unchanged.
Net foreign selling grew to P791.21 million from P59.79 million the previous day.
“More and more investors will come back into the market as they gain a sense of confidence on the fact that the worst is over in terms of the health concern, as well as the economic downturn,” AAA Southeast Equities’ Mr. Mangun said.