PSEi extends gains on bargain hunting
MANILA, Philippines — Local stocks climbed on Wednesday as investors continued to hunt for bargains, with foreign buying helping the market extend its gains.
The benchmark Philippine Stock Exchange Index (PSEi) rose 0.17 percent, or 10.54 points, to close at 6,116.53.
READ: PSEi rebounds above 6,100 on bargain hunting
Foreign investors provided some support, ending the session as net buyers with inflows of P219.10 million.
Still, Philstocks Financial Inc. said the market’s advance showed “weak conviction,” as other indicators pointed to cautious investor sentiment.
Luis Limlingan, head of sales at Regina Capital Development Corp., said the local index closed slightly higher as trading remained cautious, with investors continuing to focus on selected index heavyweights.
“Market sentiment also improved as the Philippine peso showed some relief against the US dollar,” Limlingan said.
“Nevertheless, upside remained limited as investors maintained a selective approach amid prevailing economic uncertainties,” he added.Trading remained tepid, with net value turnover reaching P5.63 billion.
Many investors remained on the sidelines amid lingering uncertainties over the situation in the Middle East and the domestic economic outlook.
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The broader market also remained weak despite the PSEi’s gain. Decliners outnumbered advancers, 106 to 88.
Sectoral indices ended mixed. Services led the gainers with a 1.59-percent advance, while holding firms—or conglomerates—fell the most, shedding 1.29 percent.
Among index members, Globe Telecom Inc. was the session’s top performer, climbing 3.10 percent to P1,632.
Acen Corp., meanwhile, was the biggest index laggard. Shares of the Ayala-led renewable energy company dropped 4.09 percent to P2.58.
Analysts said the PSEi’s latest advance came as bargain hunters continued to pick up shares following the market’s recent weakness.
However, the relatively thin turnover and negative market breadth suggested investors remained cautious as they weighed uncertainties surrounding the Middle East and the outlook for the Philippine economy. /pai
