Shares rebound as investors pick up bargains
PHILIPPINE STOCKS closed higher on Monday on bargain hunting following their decline last week, with investors also betting on further monetary tightening to arrest rising inflation.
The benchmark Philippine Stock Exchange index (PSEi) went up 42.08 points or 0.73% to close at 5,783.15 on Monday, while the broader all shares gained 6.23 points or 0.2% to end at 3,114.13.
“Philippine shares were bought up towards closing after bargain hunters made bets that central bankers across the globe would step in to combat inflation while making sure growth would not falter. Reports have been circulating that the Fed (Federal Reserve) itself will hold an emergency meeting in light of the recent development in the currency and fixed-income securities market,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Mr. Limlingan said investors also made bets ahead of the release of key economic data, including the September Philippine inflation report and US jobs numbers.
“The PSEi inched higher today… primarily driven by bargain hunting activities on select index names spurred by the past several weeks of decline and the market finding support at the 5,700 level,” Unicapital Securities, Inc. Equity Research Analyst Ralph Jonathan B. Fausto said in a Viber message on Monday.
“The local market jumped at the last minute as investors sought bargains and wedged their hopes on the resilience of some local companies’ third-quarter earnings,” Timson Securities, Inc. Head of Online Trading Marc Kebinson L. Lood said in a Viber messsage.
“Investors found it difficult to regain their base following a horrific September drubbing reflecting the worst US market monthly and quarterly performance in nearly 14 years as a result of historic hot inflation, rising borrowing costs, recession fears, and hawkish Fed,” Mr. Lood said.
The majority of the sectoral indices ended higher on Monday except for mining and oil, which went down by 143.28 points or 1.37% to 10,312.40, and services, which slipped by 2.92 points or 0.19% to 1,500.77.
On the other hand, holding firms went up by 58.73 points or 1.06% to 5,557.62; property gained 15.17 points or 0.61% to end at 2,469.97; financials climbed by 8.37 points or 0.57% to 1,474.97; and industrials rose by 9.27 points or 0.1% to 8,585.48.
Decliners outnumbered advancers, 139 versus 51, while 43 names closed unchanged.
Value turnover went down to P3.95 billion on Monday with 613.35 million shares changing hands from the P6.69 billion with 1.01 billion traded on Friday.
Net foreign selling dropped to P691.88 million on Monday from P1.04 billion on Friday.
Unicapital Securities’ Mr. Fausto placed the PSEi’s support at 5,600-5,700 and resistance at the 5,900 to 6,000 levels, while Timson Securities’ Mr. Lood put support at 5,400 and resistance at the 6,400 area. — A.E.O. Jose