PHILIPPINE shares climbed on Monday to track overseas markets as investors went bargain hunting after days of decline.
The 30-member Philippine Stock Exchange index (PSEi) gained 78.95 points or 1.15% to close at 6,913.87 on Monday, while the broader all shares index went up by 35.48 points or 0.83% to finish at 4,270.02.
“Bargain hunters took opportunities out of its (the market’s) preceding four consecutive days of decline,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
“Trading remained thin… below the year-to-date average of P7.59 billion,” he added. “This shows that many investors are still staying out of the market amid the lingering uncertainties stemming from the COVID-19 (coronavirus disease 2019) pandemic, primarily the Delta variant.”
Value turnover slumped to P4.84 billion with 2.09 billion issues traded on Monday, from the P8.42 billion with 1.77 billion shares that switched hands on Friday.
“With majority of the regional markets on the upside after [the] US market rebounded last week on a positive outlook with second quarter earnings season to bolster confidence, [the] local market followed with the continued easing of restrictions as infection rates remain at bay while vaccine rollout [continues] this week,” Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said in a text message.
Asian shares enjoyed a relief rally on Monday as record highs on Wall Street and policy easing in China helped calm some of the recent jitters on global growth, though plenty of potential pitfalls lay ahead this week, Reuters reported.
On Monday, MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.7%, after shedding 2.3% last week.
Back home, all sectoral indices closed in the green on Monday. Holding firms climbed 110.79 points or 1.62% to 6,951.47; mining and oil improved by 134.74 points or 1.39% to 9,830.90; services went up by 21.30 points or 1.33% to end at 1,616.43; property gained 31.72 points or 0.96% to 3,325.95; industrials increased by 76.01 points or 0.79% to 9,669; and financials inched up by 9.73 points or 0.65% to close at 1,487.51.
Decliners outnumbered advancers, 106 against 94, while 54 names remained unchanged.
Net foreign selling declined to P205.18 million on Monday from the P1.13 billion logged on Friday.
“The market’s recovery may be temporary as investors remain hesitant to increase positions at current price levels, although they may opt to hold off on unloading shares which will result in a sideways market,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said via e-mail.
“The sustainability of Monday’s rally is questionable given the tepid market participation as seen in the low value turnover. In addition, net foreign outflows have been consecutive for the past six trading days… showing that the local market does not have the support of offshore investors,” Philstocks Financial’s Mr. Tantiangco said. — Keren Concepcion G. Valmonte with Reuters