Stocks resume uptick on net foreign buying

MANILA, Philippines — The benchmark Philippine Stock Exchange index (PSEi) finished strong yesterday on foreign buying, analysts said.

The PSEi gained 32.68 points or 0.45 percent to close at 7,302.94, while the broader All Share gauge gained 11.52 points or 0.26 percent to close at 4,398.34.

Foreign funds snapped out of eight consecutive days of outflows with net-buying of P526 million.

Traders said this is a good sign for the market, indicating that the market is starting to recover.

“Ahead of President Xi Jinping’s historic visit to the Philippines later in the morning, investors opted to book gains in early trades, pulling the PSEI to losses of as much as 89 points before a surge of buyers rewrote yesterday’s narrative, pushing the index higher. At the noon recess, the benchmark tallied gains of 4.32 points, reverting above the 7,250-bear market line. Negative market breadth has somehow narrowed marked by tepid value flows. The market completed its reversal of the morning’s mood, posting gains of 32.68 points and rising above the 7,300-line,” said Justino Calaycay of Philstocks Financials Inc.

Elsewhere, the Dow Jones skidded nearly 400 points overnight, while European markets were marginally lower as Asia Pacific markets, particularly those in East Asia, were mostly in the red.