PSEi ends 5-day losing streak on bargain hunt

MANILA, Philippines — Local stocks rebounded on Wednesday as investors snapped up bargains, ending a five-day losing streak and pushing the main index past 5,900.

The benchmark Philippine Stock Exchange Index (PSEi) rose 0.7 percent or 41.10 points to close at 5,907.89.

This was even as the peso slid to a new low against the US dollar while global crude prices retested recent highs.

READ: Uncharted territory: Peso closes at new record low

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said investor sentiment improved after the market took positively the UAE’s decision to exit OPEC, raising expectations of lower global fuel prices.

READ: UAE pulls out of OPEC oil cartels citing ‘national interests’

“This helped ease inflation concerns and provided near-term support for equities,” Limlingan said.

Trading remained active, with net value turnover reaching P6.61 billion. This was slightly above the year-to-date average of P6.4 billion.

READ: Crude back above $110 on Strait stalemate as US stocks retreat

Net foreign buying

Foreign investors returned as net buyers, posting P279.59 million in inflows after 12 consecutive sessions of net selling.

Philstocks Financial said the market’s climb was driven by bargain hunting following recent declines, with investors taking advantage of lower valuations.

Sectoral performance was mixed. Services led the gains, climbing 1.33 percent. Properties ended at the bottom, slipping 0.08 percent.

Market breadth was positive, with advancers outpacing decliners, 105 to 78.

Movers

Among index members, ACEN Corp. emerged as the top gainer, jumping 4.14 percent to P2.77.

China Banking Corp., however, was the session’s main laggard, dropping 5.95 percent to P60.10.

Analysts said that despite the rebound, the index remained below key resistance levels, indicating lingering caution among investors as they continue to assess broader market conditions. /dda