Stocks climb anew as investors hunt for bargains

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THE Philippine Stock Exchange — PHOTO BY SANTIAGO J. ARNAIZ

LOCAL SHARES climbed on Tuesday as investors turned bargain hunters following positive global developments.

The benchmark Philippine Stock Exchange index (PSEi) rose 28.85 points or 0.37% to close at 7,730.45 on Tuesday. The broader all shares index was flat with a 1.17-point or 0.02% increase to 4,583.06.

“We saw a minor bounce today after yesterday’s dismal performance. Support remains at 7,700 however, we may see it end below this level for the week,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail on Tuesday.

Despite the gain, he said the local bourse “remains completely out of sync with bigger markets as the sentiment here keeps investors on the sidelines.”

“Investors may have already lost hope that we would see any end-of-year window dressing,” Mr. Mangun added.

For Timson Securities, Inc. Trader Darren T. Pangan, the increase in the main index was caused by “last minute bargain hunting after (Monday’s) loss of 2.23%.”

“Investor sentiment may have remained positive as a continuation of optimism regarding the recent US-China trade agreement reports, despite the lack of details currently disclosed. Better-than-expected economic reports from China yesterday may have also kept market sentiment positive,” he said in a text message on Tuesday.

Investors on Wall Street were bullish during Monday’s trading, as the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite indices jumped 0.36%, 0.71% and 0.91%, respectively.

Most Asian markets also went up on Tuesday: Japan’s Nikkei 225 and Topix indices added 0.47% and 0.59%, respectively. Hong Kong’s Hang Seng index, China’s Shanghai SE Composite index and South Korea’s Kospi index likewise advanced 1.22%, 1.27% and 1.27%, respectively.

Sectoral indices at the PSE were divided among gainers and losers. Services rose 23.50 points or 1.56% to 1,528.09; industrials climbed by 42.54 points or 0.44% to 9,583.34; and holding firms added 21.41 points or 0.28% to 7,470.79.

Meanwhile, mining and oil went down 77.35 points or 1.01% to 7,527.96; financials gave up 8.24 points or 0.44% to 1,850.13; and property lost 12.67 points or 0.30% to 4,089.28.

Value turnover on Tuesday stood at P10.37 billion with 2.71 billion issues changing hands, up from Monday’s P6.23 billion with 483.74 million issues.

Stocks that fell outnumbered those that rose, 138 against 51, while 52 names ended unchanged.

Foreigners remained sellers on Tuesday, even as the net outflow was trimmed to P536.04 million from Monday’s P983.42 million.

Most Southeast Asian stock markets also edged lower on Tuesday as investors avoided making big bets amid conflicting views from Washington and Beijing on the interim trade deal announced last week.

The White House and Beijing have been locked in a 17-month trade war. — Denise A. Valdez with Reuters