PSEi snaps 2-day slide on bargain hunting
MANILA, Philippines — Local stocks snapped a two-day losing streak on Thursday as bargain hunting offset continuing geopolitical risks and a weaker peso.
The benchmark Philippine Stock Exchange Index (PSEi) edged up 0.24 percent, or 15.27 points, to close at 6,283.12.
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Philstocks Financial Inc. research manager Japhet Tantiangco said the market’s rebound was driven mainly by bargain hunting after recent losses.
Luis Limlingan, head of sales at Regina Capital Development Corp., said investors took advantage of lower appraisal, leading to renewed buying interest across selected sectors.
Selective buying
“The rebound reflected improved sentiment as investors selectively accumulated stocks at more attractive price levels,” Limlingan said.
Still, investors remained cautious, with net value turnover reaching only P4.99 billion.
The broader market also showed a weak nuances as decliners outnumbered advancers, 17 to 13, while foreign investors remained net sellers with outflows of P76.61 million.
Tantiangco said the cautious backdrop stemmed from downside risks tied to the US-Iran conflict, which has raised concerns over higher global prices and the continued weakness of the peso against the US dollar.
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“The local market bounced back today mainly due to bargain hunting,” he said. “Sentiment remains cautious, however.”
The banking index rose 1.20 percent to lead sectoral gains, while mining and oil stocks fell 1.10 percent to post the biggest drop.
Among index members, Semirara Mining and Power Corp. emerged as the top gainer, advancing 5.10 percent to P22.65.
Meanwhile, DigiPlus Interactive Corp. was the day’s biggest laggard, dropping 3.04 percent to P9.89.
Analysts said the session’s modest gain suggested that while investors took advantage of lower valuations, many stayed on the sidelines as they monitored developments in the Middle East and their potential impact on inflation, currencies and financial markets. /pai INQ
