The local stock barometer rebounded on Tuesday, ending a six-day slump but still unable to bring itself out of bear territory.
The main-share Philippine Stock Exchange index (PSEi) added 89.87 points or 1.26 percent to close at 7,226.90 even as foreign investors continued to flee from local equities.
There was P2.23 billion worth of net foreign selling from the oversold market.
While the novel coronavirus scare still weighs heavy on the market, Papa Securities said the slight calm in US markets on Monday night allowed the PSEi to settle above the 7,000 support area.
The oversold technical reading showed that a bounce was imminent. “However, the underlying problem (fast infection, no vaccine) still remains, so any exhaustion bounce may be short-lived and the prevailing trend to continue downwards,” the brokerage said.
“For as long as uncertainty hangs over the Philippines, we can expect anxiety to weigh on the economy the same way a cold or cough curtails all of us,” ING Philippines economist Nicholas Mapa said.
As such, the economist said the Philippines may have to be content with growth faster than last year’s disappointing 5.9 percent but once again be pressed to meet the government growth target of 6.5-7.5 percent.
The stock market was boosted on Tuesday by the financial counter, which rose by 2.1 percent, while the industrial counter added 1.74 percent. The holding firm sub-index firmed up by 1.22 percent.
Only the mining/oil index failed to advance, instead declining by 0.61 percent.
Value turnover for the day amounted to P9.61 billion.
There were 113 advancers that outnumbered 73 decliners while 48 stocks were unchanged.
BDO and URC both advanced by over 4 percent, while Ayala Corp. and GT Capital rose by over 3 percent.
Metrobank, Metro Pacific, PLDT, Globe Telecom, Megaworld and JG Summit all rose by over 1 percent.
SM Investments, the day’s most actively traded stock, added 0.92 percent. BPI also firmed up.
Notable gainers outside the PSEi included MWC, which rallied by 7.99 percent. On Monday, the company announced a buy-in deal that will allow tycoon Enrique Razon Jr. to acquire 25 percent of the company’s enlarged capital. INQ