PSEI firms up, gains 2.42%

The local stock barometer rebounded to the 7,100 mark yesterday as local investors picked up oversold stocks, making up for sluggish foreign investor appetite.

The main-share Philippine Stock Exchange index (PSEi) racked up 169.22 points or 2.42 percent to close at 7,176.43, firming up for the second straight session. The market entered bear territory last week.

All counters ended higher, with the holding firm and property counters, which surged by over 3 percent, as the biggest gainers.

The financial counter added 1.17 percent while the industrial, services and mining/oil counters also slightly rose.

Value turnover amounted to P6.5 billion.

For the first time since May 15, the market on Tuesday posted net foreign buying, although at a modest level of P57.7 million, breaking the 27-day streak of outflows, Papa Securities analyst Gio Perez noted. Yesterday, however, net foreign selling resumed to the tune of P235.14 million.

“Net foreign buying days have always been short-lived with the longest period since February only lasting for two days last May so it’s important to treat this with scrutiny,” Perez said.

As technical indicators suggested an oversold market, Papa Securities expected a short-term bounce.

There were 102 advancers that outnumbered 95 decliners while 43 stocks were unchanged.

DMCI, whose construction arm expects to ride on the government’s Build, Build, Build program, led the PSEi with a 6.86-percent gain.

Property giant SM Prime and Gokongwei-led conglomerate JG Summit both added over 5 percent, while SM Investments racked up 4.54 percent.

Infrastructure holding firm Metro Pacific gained more than 3 percent.

Ayala Land, the day’s most actively traded stock, rose by 2.73 percent, while parent conglomerate added 2.71 percent.

Meralco and PLDT both rose by over 1 percent while Metrobank and Jollibee also contributed gains.

Outside of the PSEi, notable gainers included Now Corp. (+3.74 percent) and Starmalls (+1.41 percent) as third telco speculative play was revived following the government’s issuance of the second draft of the terms of reference for a new player.

Another notable gainer outside the PSEi was Vitarich, which rose by 4.44 percent. —DORIS DUMLAO-ABADILLA