Stocks up on bargain hunting, Wall Street’s rise
SHARES ended higher on Monday on bargain hunting after the market’s decline last week and improved sentiment on the back of the positive performance of Wall Street over the weekend.
The benchmark Philippine Stock Exchange index (PSEi) rose by 21.26 points or 0.34% to end at 6,238.82 on Monday, while the broader all shares index improved 14.84 points or 0.44% to close at 3,352.47.
“The local market rose this Monday…as investors continued with their bargain hunting. The market also took cues from Wall Street’s positive performance last Friday,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
“Trading remained tepid, however, as many remained on the sidelines due to the lingering risks, including the further depreciation of the peso, inflationary risks stemming from the rising local fuel prices, and recession risks in the US,” Mr. Tantiangco said.
He said Universal Robina Corp. was the top index gainer, jumping 6.51% to P101.50 each, while Bank of the Philippine Islands was the main laggard as it lost 2.84% to end at P85.50 apiece.
Value turnover on Monday was at P5.24 billion with 682.61 million shares switching hands, higher than the P4.53 billion and 604.01 million issues seen on Friday.
Wall Street rebounded on Friday as oil prices eased, tempering fears of a recession in the US due to aggressive Federal Reserve tightening amid higher inflation.
The Dow Jones Industrial Average improved 823.32 points or 2.68% to end at 31,500.68; the S&P 500 climbed 116.01 points or 3.06% to finish at 3,911.74; and the Nasdaq Composite rose 375.43 points or 3.34% to close at 11,607.62.
On the other hand, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message that the local bourse closed higher ahead of key data and as investors await the inauguration of President-elect Ferdinand R. Marcos, Jr.
“Philippine shares started the week in the green as investors brace for the end of the semester with the latest bank lending data and S&P Global Philippines purchasing managers’ index on July 1. On Thursday, the 17th President of the Philippines will have his inauguration at the National Museum of Fine Arts,” Mr. Limlingan said.
Sectoral indices were mixed at the close of trading on Monday. Services rose 31.69 points or 1.95% to 1,655.85; industrials went up 107.85 points or 1.22% to 8,893.08; and holding firms added 10.49 points or 0.17% to end at 5,863.55.
In contrast, mining and oil declined 144.96 points or 1.33% to 10,717.65; financials fell 13.23 points or 0.88% to 1,487.47; and property retreated 1.12 points or 0.03% to end the session at 2,868.47.
Advancers beat decliners, 98 versus 84, while 54 names closed unchanged.
Net foreign selling totaled P389.88 million on Monday, slightly lower than the P335.46 million in net outflows recorded on Friday. — Revin Mikhael D. Ochave
