PSEi advances as bargain-hunters snap stocks

By Alexandria Grace C. Magno

PHILIPPINE STOCKS advanced on Monday as bargain-hunters stepped in after last week’s sell-off, even as political tension tied to a widening flood-control corruption scandal kept broader sentiment cautious.

The Philippine Stock Exchange Index (PSEi) climbed 3.48%, or 194.77 points to 5,779.12, snapping a sharp decline on Friday. The broader all-share index added 0.63%, or 20.54 points to 3,280.8.

“The PSEi ended higher as the market took advantage of last Friday’s steep decline to buy stocks at a bargain,” Luis A. Limlingan, head of sales at Regina Capital Development Corp., said in a Viber message. “However, there is still no clear catalyst to drive long-term momentum, as uncertainty remains regarding the country’s economic growth.”

AP Securities, Inc. said the rebound reflected opportunistic buying following calls for accountability among local officials linked to irregular flood-control contracts, a scandal that has intensified pressure on the administration of President Ferdinand R. Marcos, Jr.

The government’s anti-graft campaign, launched in August, has disrupted public spending and contributed to softer output.

Gross domestic product expanded 4% in the third quarter, the slowest since 2021, as budget execution slowed amid investigations into infrastructure projects. Nine-month growth averaged 5%, below the government’s full-year goal of 5.5% to 6.5%.

Mr. Marcos has insisted that the corruption crackdown has strengthened trust in the country’s economic stewardship, saying business confidence has been “restored.” He said last week that people tied to anomalous flood-control contracts would face imprisonment before Christmas, adding political stakes to an already fragile economic backdrop.

Still, Monday’s trading reflected broad-based gains across sectors. Financials advanced 4.73% to 1,893.07, lifted by bargain-hunting in select banks.

Property firms rose 4.14% to 2,086.14, while services added 2.97% to 2,400.73. Holding firms gained 2.07% to 4,482.45, and industrials increased 1.79% to 8,478.39. Mining and oil was the day’s only decliner, slipping 0.3% to 12,997.29.

Market breadth was positive, with advancers beating decliners 115 to 74, while 59 issues were unchanged.

Value turnover improved to P6.76 billion from P6.26 billion on Friday, even as share volume fell to 1.12 billion from 1.68 billion. Net foreign selling widened to P171.2 million from P104.62 million, suggesting global funds remained cautious.

Offshore, Wall Street ended mixed on Friday as investors assessed the likelihood that the US Federal Reserve will delay interest-rate cuts in December.

The Nasdaq finished higher, supported by gains in some large technology names, while the S&P 500 slipped after an early drop sent all three major indexes lower by more than 1%.

Market attention is now turning to Nvidia Corp.’s results next week as investors weigh whether stretched valuations in artificial intelligence-related shares can hold.