Bargain hunting propels market past 7,400 mark

MANILA, Philippines — Local stocks leaped to a two-week high yesterday, bucking the subdued mood in other Asian markets, as foreign buyers led investors in picking up bargain issues.

The benchmark Philippine Stock Exchange index or PSEi closed at 7,401.16, up 118.49 points or 1.63 percent, while the broader All Shares index gained 58.69 points or 1.51 percent to finish at 3,937.64.

“The market made a strong bounce after finding support at the 20-day moving average. 23 out of 30 index stocks ended in the green, while the broader market was also positive with 133 gainers against 56 losers,” AB Capital Securities said in a commentary.

Claire Alviar, research analyst at PhilStocks Financial, said the local bourse jumped as bargain hunting prevailed after last week’s decline.

Net foreign buying of P775.75 million lifted the market as well.

“Moreover, the approval of the House of Representatives on the second reading to extend the validity of the P4.5 trillion 2021 national budget until next year also spurred optimism in the market. Extending the budget is favorable to the economy as it is expected to boost the country’s spending,” she said.

Meanwhile, shares in most Asian emerging markets were subdued yesterday as US Federal Reserve chair Jerome Powell’s reappointment for a second term raised bets for quicker rate hikes.

The overnight news on Powell’s second term as Fed chair buffeted financial markets as traders prepared for the imminent end to the Fed’s large scale coronavirus-led emergency Fed bond-buying program.