Philippine shares rebound on bargain hunting
PHILIPPINE SHARES rebounded on Wednesday, snapping a three-day losing streak, on bargain hunting and following Wall Street’s recovery.
The bellwether Philippine Stock Exchange index (PSEi) rose by 1.58% or 101.93 points to end at 6,535.17 on Wednesday, while the broader all shares index climbed by 1.22% or 43 points to finish at 3,563.94.
“The local market bounced as investors hunted for bargains after a three-day decline. Along with our regional peers, the bourse tracked Wall Street’s rebound overnight,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message. “Also, the strengthening of the local currency against the US dollar boosted sentiment.”
“Philippine shares made a furious comeback following the rally of Asian and US markets, as investors start to make bets ahead of the gross domestic product (GDP) release [on Thursday]. Wall Street snapped its three-day losing streak as investors took a break from recession fears, buoyed by a rally in Japanese equities,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Asian share markets extended their rally on Wednesday, led by another bounce in the Nikkei, as the Bank of Japan unexpectedly turned cautious on rate hikes amidst market volatility, which led to a sharp fall in the yen, Reuters reported.
The Nikkei’s 2.3% rise followed Tuesday’s 10% rally, suggesting investors were finding their footing after the recent market rout. The index slumped 13% on Monday. MSCI’s broadest index of Asia-Pacific shares outside Japan jumped 1.4%.
The S&P 500 and the Nasdaq ended 1% higher on Tuesday as investors jumped back into the market a day after a dramatic sell-off, with recent comments by US Federal Reserve officials easing US recession worries. The Dow rose as well, but all three major stock indexes pared gains heading into the close and ended well off their highs of the day.
Meanwhile, the peso ended at P57.515 per dollar on Wednesday, strengthening by 29.5 centavos from its P57.81 finish on Tuesday, Bankers Association of the Philippines data showed. This was its best close since the P57.465 on May 16.
All sectoral indices closed higher on Wednesday. Property gained by 3.25% or 81.52 points to end at 2,590.11; services went up by 1.9% or 37.82 points to 2,021.24; mining and oil jumped by 1.61% or 129.72 points to 8,153.81; industrials climbed by 1.24% or 109.48 points to 8,911.29; financials rose by 0.88% or 17.42 points to 1,980.70; and holding firms increased by 0.53% or 29.83 points to 5,657.72.
Value turnover went down to P4.91 billion on Wednesday with 543.36 million shares changing hands, from P5.12 billion with 419.01 million issues traded on Tuesday.
Advancers outnumbered decliners, 98 versus 81, while 54 names were unchanged.
Net foreign selling dropped to P511.99 million on Wednesday from P635.78 million on Tuesday. — R.M.D. Ochave with Reuters
