Index jumps as investors pick up cheap stocks

MANILA, Philippines — Bargain-hunting activities continued yesterday, lifting the local stock market for a second straight session.

The benchmark Philippine Stock Exchange index (PSEi) zoomed by 2.11 percent or 119.53 points, capping off the week at 5,782.70.

The broader All Shares index likewise surged by 1.39 percent or 44.12 points to end at 3,218.81.

All sectors were in the positive territory, except for holding firms, which slipped by 0.12 percent. Leading the charge was the services index with a 4.09-percent jump.

Franco Fernandez, equity research analyst at DragonFi Securities Inc., said the PSEi ended the session yesterday at its strongest close since Sept. 28, as bargain hunting drew in foreign investors, who turned net buyers.

He said the rebound was led by ICTSI (up by 4.81 percent to P860), PLDT (up by 4.17 percent to P1,250), BPI (up by 3.53 percent to P99.80) and RL Commercial REIT (up by 9.05 percent to P6.75).

“It was a week of technical rebounds. The move was largely driven by bargain hunting, despite limited domestic catalysts, a peso trading above 63 against the dollar and persistent economic concerns,” Fernandez said.

“The rebound in Asian markets and the continued easing of global bond yields likely added support,” he said.

Luis Limlingan of Regina Capital said market sentiment may have also benefited from potential fund reallocation following MSCI’s downgrade warning on Indonesia, which could redirect some foreign inflows toward other emerging markets, including the Philippines.

“This likely supported bargain hunting and strengthened buying interest, although investors remain cautious about geopolitical and local economic developments,” Limlingan said.

Total value turnover reached P8.51 billion, up from the previous day’s P6.99 billion.

Advancers pummeled decliners, 106 to 78, while 69 issues were unchanged.