Index snaps losing streak on bargain hunting

The PSEi gained 0.14 percent or 9.83 points but still remained below the 7,000-mark at 6,848.25. Philstar.com/File

MANILA, Philippines - The Philippine Stock Exchange index (PSEi) snapped yesterday a five-day losing streak as investors capitalized on bargain stocks, analysts said.

The PSEi gained 0.14 percent or 9.83 points but still remained below the 7,000-mark at 6,848.25.

The broader All Shares index also picked up 0.03 percent or 1.45 points to close at 3.951.99.

Analysts said bargain hunting propelled local share prices, bucking a sluggish day in most markets in the region.

Asian stocks were dampened on continued investor caution ahead of the US Fed rate meeting next week where it is expected that interest rates would be raised.

Local counters finished at three apiece, with financial firms (up 1.08 percent) leading those in the green while services companies (down 0.70 percent) led those in the red.

 Market breadth, however, remained negative as decliners crushed advancers, 107 to 67, while 48 stocks were unchanged.Value turnover was thin at P4.40 billion.

With the PSEi still trading below the 6,900 support level, DA Market Securities in its report said further corrections could be expected.

“For those with existing positions, we advise placing tight support stops to prevent potential losses from the anticipated corrections,” the local stock brokerage said.

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