Foreign investors prepare for PSEi resurgence

The stock barometer rebounded to the 7,900 level on Wednesday as foreign investors picked up large-cap stocks to position for a future upswing.

The main-share Philippine Stock Exchange index (PSEi) racked up 74.99 points, or 0.96 percent, to close at 7,915.30, tracking an upswing across regional markets bolstered by overnight stock gains over in Wall Street.

At the local market, all counters ended higher, led by the holding firm and property counters, which both gained over 1 percent.

Value turnover for the day hit P5.55 billion. Foreigners were net buyers amounting to P841.28 million.

Joseph Roxas, president of local stock brokerage Eagle Equities, said foreigners could be starting to load up on local stocks on expectations the market might have bottomed out.

“October is always the bottom. I feel that many more are waiting for the market to go down further to be able to buy more stocks,” Roxas said.

The index has been consolidating below the 8,000 barrier since mid-July this year.

“The main index ended higher today bouncing off resistance at 7,920 but ending a few points away from it. It continues to trade within its congestion area between 7,750 and 7,920,” AAA Equities head of research Christopher Mangun said.

“If it fails to break and end above it, we may see it test support in the next few days … Nothing happens until we see it break and hold above 8,000,” he added.

Despite the PSEi’s gain, market breadth was negative. There were 93 decliners that edged out 87 advancers, while 62 stocks were unchanged.

The PSEi was led higher by Gokongwei-led conglomerate JG Summit, which surged by 4.08 percent. Ayala Land Inc. added 2.29 percent.

Metro Pacific, SM Prime, Megaworld and DMCI all added over 1 percent. SM Investments, BPI, URC and GT Capital also rose by close to 1 percent.

BDO, ICTSI and Globe Telecom modestly gained.

Outside the PSEi, notable gainers included Phinma Energy, which will be the backdoor-listing vehicle of the Ayala group for its energy assets.