PSEi bounces back on bargain hunting

MANILA, Philippines — The local stock market bounced back as investors picked up bargain stocks following the previous day’s drop.The benchmark Philippine Stock Exchange index (PSEi) rose by 1.05 percent or 59.57 points to end yesterday’s session at 5,736.69.

The broader All Shares index also advanced by 0.67 percent or 21.26 points, settling at 3,191.99.

AB Capital Securities said the PSEi held above 5,700 for most of the session after opening at 5,688, with SM Investments, BPI, ICTSI and SM Prime leading a bounce from oversold levels.

It said buyers defended 5,700, but light turnover still points to a technical rebound and not a trend reversal.

All sectors were in the positive territory, except for industrial, which slipped by 0.32 percent.

The mining and oil index led the charge with a 1.63-percent jump, followed by holding firms, which gained 1.44 percent.

Total value turnover reached P4.94 billion, down from P5.46 billion the previous day.

Foreigners were net buyers with net inflows at P175.56 million.

Decliners crushed advancers, 100 to 80, while 68 shares were unchanged.

Keeping its position as the top traded stock was ICTSI, which grew by 0.51 percent to P894.50 per share.

It was followed Sy-led BDO Unibank and SM Prime, which climbed by 0.63 percent and 2.77 percent, respectively, to P111.20 and P16.30.

While selling pressure continued to ease, AB Capital said elevated US Treasury yields, weak peso and high inflation remain as headwinds.

It said 5,700 is now near-term support, but 5,580 remains the major support.