Index returns to 6,400 level on bargain hunting

MANILA, Philippines — The main index climbed out of a four-month low to return to the 6,400 level yesterday as investors tried to fish for marked down stocks.

The benchmark Philippine Stock Exchange index or PSEi gained 51.18 points or 0.80 percent to close at 6,446.35, while the broader All Shares index added 25.61 points or 0.65 percent to finish at 3,913.32.

Despite the market ending higher, total value turnover was thin at a low P5.043 billion, indicating that investors are staying on the sidelines but picking up bargains toward the close of trading.

Market breadth was positive with 125 advancers to 76 decliners, while 52 issues were unchanged. Foreign funds were net sellers for the 25th straight session with P690 million.

“Local market rallied on bargain hunting, but net foreign selling persisted for the 25th straight session.. Investors remained on the sidelines as the country recorded a record high in terms of daily new (virus) cases,” AB Capital Securities said in a market commentary.

Moving forward, analysts said traders remain on a wait-and-see stance over the progress in containing the spread of the virus.

Around Asia, stock markets declined yesterday after Wall Street rose on gains for tech stocks and reassurance by the US Federal Reserve of support for an economic recovery.

Fed Chairman Jerome Powell said that while the economy was improving, a recovery is “far from complete.” In a testimony to Congress, he said the Fed “will continue to provide the economy the support it needs for as long as it takes.”