PSEi snaps 5-day skid on foreign inflows

MANILA, Philippines — Local stocks bounced back on Friday as bargain hunters returned after five straight sessions of losses, while strong foreign buying provided additional support.

The benchmark Philippine Stock Exchange Index (PSEi) climbed 1.67 percent, or 95.95 points, to close at 5,825.97.

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Philstocks Financial Inc. described the recovery as a technical bounce, with investors picking up battered shares following the market’s long decline.

Luis Limlingan, head of sales at Regina Capital Development Corp., said market sentiment improved following expectations that local gas prices could decline next week, easing some cost pressures. 

“Sentiment was further supported by reports that US and Iranian negotiators are exploring a phased deal that could see Tehran reopen the Strait of Hormuz and Washington lift its blockade of Iranian ports,” Limlingan said.

Foreign investors were net buyers, posting net inflows of P2.85 billion. 

This helped lift the market despite lingering concerns over the country’s macroeconomic environment.

Trading activity, however, remained tepid. Net value turnover stood at P5.21 billion as many investors stayed on the sidelines due to continued downside risks, according to Philstocks.

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All sectoral indices finished in positive territory. Services led the advance after rising 3.22 percent.

International Container Terminal Services Inc. was the strongest performer among index members. Shares of the port operator climbed 3.95 percent to P920 each.

Semirara Mining and Power Corp., meanwhile, was the main index laggard. Its shares fell 4.50 percent to P15.28.

Analysts said Friday’s rebound offered some relief after the market’s five-session slump. 

Still, the subdued turnover suggested that investors remained cautious while assessing risks to the broader economy. /pai