PSEi lifted by bargain-hunting, US cues

The local stock barometer rebounded sharply on Thursday as foreign investors picked up local shares following cues from Wall Street and taking advantage of the local downturn in recent days.

The Philippine Stock Exchange index gained 108.95 points or 1.52 percent to close at 7,283.25.

The rebound was due to bargain-hunting and favorable cues from the US market, local stock brokerage AB Capital Securities said.

Overnight, Wall Street brought key US stock indices to new highs on optimism that the US economy can withstand a looming interest rate hike to be sanctioned by the US Federal Reserve.

Most markets across the Asian region likewise firmed up to 19-month highs.

The local market, on the other hand, was reinvigorated by some P506 million in net foreign buying. Total value turnover for the day stood at P7.59 billion.

All counters firmed up led by the financial, holding firm, services and property counters which advanced by over 1 percent.

Market breadth was positive: there were 113 advancers that edged out 75 decliners while 48 stocks were unchanged.

“In terms of technicals, (Thursday’s) retracement of (Wednesday’s) losses may indicate a failed breakdown and a possible short-term reversal toward the upper 7,400 level of the uptrend channel,” AB Capital said.

PLDT and JG Summit led the PSEi higher, both advancing by over 3 percent. SM Investments rose by 2.9 percent and Jollibee by 2.28 percent.

BPI shares rose by 2.38 percent after announcing a 20.9 percent increase in net profit last year to P22.05 billion.

Ayala Land was the most actively traded stock, gaining 1.11 percent after 2016 results came in line with its medium-term goal. The property giant reported on Wednesday a 19-percent rise in net profit to P20.9 billion. It also stated optimism on business prospects for this year, when it plans to launch P100 billion in fresh property inventory and spend a record high P88 billion for expansion.

SM Prime and AEV both gained over 1 percent while Ayala Corp., URC, ICTSI and Security Bank eked out modest gains.

Outside of the PSEi, notable gainers included LMG, which rose by 15.36 percent.

On the other hand, GT Capital, Semirara and DMCI all declined. Non-PSEi stock Cemex also continued to fall.