PSEi rebounds, gains 0.97%

The local stock barometer yesterday rebounded to the 8,500 level, tracking the recovery in the US and regional markets from the bloodbath last week.

The Philippine Stock Exchange index (PSEi) recouped 82.23 points or 0.97 percent to close at 8,570.14 on selective buying of large-cap stocks mostly by domestic bargain hunters.

“We think the PSEi’s correction is nearing its end and recommend a trading buy,” Papa Securities said in a research note.

Papa Securities sees the closely tracked Dow Jones Industrial Average to continue a short-term rally to 25,350 (from Monday’s finish of 24,601.27) which may shore up the PSEi to the 8,700 level.

“However, this will be short-term as the full effects of inflation in February will still be felt in the Philippines, raising the possibility of a 25-50-basis point rise in interest rates. This is also the reason why property firms have been weak,” Papa Securities executive vice president Homer Perez said.

“In the short term, we will probably range between 8,400 and 8,700. One thing which may lift the market is that foreign selling may be abating,” he said.
On Tuesday, net foreign selling hit P841.65 million, down from previous day’s P1.27 billion.

The rebound was led by the holding firms, mining/oil and property counters which all added over 1 percent. Only the industrial counter ended lower.

Value turnover for the day was P7.66 billion. There were 110 decliners that edged out 96 advancers while 48 were unchanged.—DORIS DUMLAO-ABADILLA