Stocks bounce back on improved investor sentiment

MANILA, Philippines —  The stock market returned to its winning ways yesterday after a brief slump as positive developments abroad buoyed investor sentiment.

The Philippine Stock Exchange index snapped a two-day losing streak, surging by 1.43 percent or 91.07 percent to end at 6,450.03.

Also finishing in the positive territory was the broader All Shares index, which grew by 0.94 percent to 32.46 points at 3,495.13.

“Philippine shares closed in positive territory yesterday after the Federal Reserve announced some progress in reducing inflation but indicated that it is not yet ready to lower interest rates,” Luis Limlingan of Regina Capital said.

Philstocks Financial research and engagement officer Mikhail Plopenio attributed yesterday’s climb to investors hunting for bargains after a two-day decline.

“Positive cues from Wall Street also fueled this Wednesday’s climb with the bourse joining its neighboring peers in the green territory at the session’s close,” he said.

Plopenio said inflows from foreign funds likewise gave the market a boost as foreigners were net buyers with net inflows amounting to P22.09 million.

However, he said net market value turnover was tepid at P3.56 billion, lower than the year-to-date average of P4.99 billion.

All counters were in the green except for mining and oil, which slipped by 0.97 percent.

The rest of the sectors rose by more than one percent each, led by financials and services, which grew by 1.56 percent and 1.41 percent, respectively.

Market breadth turned out positive as advancers edged out decliners, 95 to 83, while 58 issues were unchanged.

BDO Unibank recorded the biggest gain among the index members at 4.2 percent while Nickel Asia posted the largest drop at 3.16 percent.