Investors comb PSEi for bargains, but Delta variant peril lurks
The stock barometer bounced back to the 6,500 level on Thursday as investors picked up bargains at the dawning of the second quarter corporate earnings season, but value turnover was way below normal levels.
The main-share Philippine Stock Exchange index (PSEi) recouped 100.41 points, or 1.55 percent, to close at 6,576.62.
All counters ended higher, led by the financial counter, which surged by 2.9 percent, while the holding firm counter added nearly 2 percent.
The industrial and mining/oil counters both rose by over 1 percent, while the services and property counters firmed up by less than 1 percent.
Value turnover was low at P3.69 billion as the Delta coronavirus variant, seen as a big risk to economic recovery, kept many investors at bay. The recent weakening of the local currency against the US dollar is also a disincentive to foreign players.
There were 136 advancers that overwhelmed 56 decliners, while 52 stocks were unchanged.
“Investors became bargain-hunters as upbeat US earnings from IMB, Coca-Cola and Johnson & Johnson also boosted positivity in the market,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.
Domestic hands propped up the market, while foreign investors were mostly sellers, resulting in a net foreign outflow of P338.64 million.
The PSEi was led higher by BPI, which jumped by 3.8 percent after announcing a 28.8-percent year-on-year growth in second quarter net profit. It was the first PSEi company to disclose its second quarter corporate results.
The country’s largest lender BDO also advanced by 3.36 percent ahead of its second quarter earnings report.
Gokongwei-led conglomerate JG Summit rose by 3.78 percent, while SM Investments added 2.13 percent.
Metrobank, SM Prime, Puregold and URC all climbed by over 1 percent, while ICTSI, Jollibee, RLC and Globe Telecom firmed up by less than 1 percent.
Notable gainers outside the PSEi included AC Energy, the day’s most actively traded company. This renewable energy firm has been rising ahead of the next PSEi rebalancing as many see it as a strong contender to debut on the main index.
On the other hand, Emperador fell by 2.31 percent as some investors speculated it could lose its slot in the PSEi.
LTG fell by 1.83 percent while Ayala Land and PLDT both lost less than 1 percent.
Outside the PSEi, Converge lost 1.91 percent.
