Shares rebound as investors pick up bargains
SHARES bounced back on Monday on bargain hunting and the impact of the index rebalancing ahead of the central bank’s upcoming policy review.
The 30-member Philippine Stock Exchange index (PSEi) advanced 90.79 points or 1.24% to end at 7,361.15, while the broader all shares index went up 20.81 points or 0.53% to close at 3,892.94.
COL Financial Group First Vice-President April L. Tan said the PSEi staged a recovery rally following its sharp fall on Friday. The index sank by 162.26 points or 2.18% to end at 7,270.36 on Friday, while the broader all shares index fell 52.61 points or 1.34% to finish at 3,872.13.
Unicapital Securities, Inc. Equity Trader Christopher Adrian T. San Pedro said bargain hunters caused the PSEi to move sideways between the 7,156 support and 7,500 resistance zones amid hopes of a continued accommodative stance by the Bangko Sentral ng Pilipinas (BSP).
The BSP’s policy-setting Monetary Board will meet on Thursday. All 16 analysts in a BusinessWorld poll last week said the central bank will likely keep benchmark interest rates steady to help the economy recover.
“The latest iteration of the benchmark PSE index came into effect today, and was the main driver of market activity despite weekend developments in the Ukraine,” AAA Southeast Equities, Inc. President William M. Cabangon said in a Viber message on Monday.
“Smart money that speculated on their inclusion to the index used the rebalancing flows as an opportunity to take profits on their positions, while passive funds begin to accumulate,” Mr. Cabangon added.
Monde Nissin Corp. and Emperador, Inc. became PSEi members on Monday after the regulator’s review of the index and sectoral indices’ performance from the first to last trading days of 2021. Monde Nissin’s shares ended 6.39% lower and Emperador dropped by 10.44%.
Back home, most sectoral indices advanced on Monday, except for mining and oil, which dropped 27.76 points or 0.25% to 10,923.64, and industrials, which lost 35 points or 0.33% to end at 10,550.54.
On the other hand, holding firms climbed 129.67 points or 1.89% to 6,973.98; financials went up 26.28 points or 1.53% to 1,741.83; property advanced 29.98 points or 0.88% to 3,427.05; and services increased 13.07 points or 0.68% to 1,921.25.
Value turnover dropped P14.19 billion with 1.19 billion issues traded on Monday from the P22.83 billion with 1.93 billion shares that switched hands on Friday.
Decliners beat advancers, 113 versus 85, while 48 names closed unchanged after Monday’s trading session.
Foreigners turned sellers with P2.42 billion in net outflows logged on Monday versus the P4.47 billion in net purchases seen on Friday. — M.C. Lucenio
