Bargain hunting lifts PSEi from 10-month low

MANILA, Philippines — The local stock market finally put an end to its bleeding, rebounding from a 10-month low performance as investors capitalized on cheap prices.

The bellwether Philippine Stock Exchange index (PSEi) jumped by 1.67 percent or 95.95 points, snapping a five-day losing streak, to end at 5,825.97 yesterday.

The broader All Shares index followed the upward trajectory, adding 1.11 percent or 35.49 point to settle at 3,246.21.

Luis Limlingan of Regina Capital said bargain hunting lifted the index back above the 5,800 level.

“Market sentiment improved following expectations that local gas prices could decline next week, easing some cost pressures,” he said.

Limlingan said sentiment was further supported by reports that negotiators from the United States and Iran are exploring a phased deal that could see Tehran reopen the Strait of Hormuz and Washington lift its blockade of Iranian ports.

All sectors were in the green, led by services, which surged by 3.22 percent. Financials also recorded a strong showing with a 1.51-percent increase.

Trading was strong as total value turnover improved to P8.76 billion from P5.09 billion the previous day.

Advancers overpowered decliners, 106 to 70, while 65 issues were unchanged.

AB Capital Securities said the PSEi closed at the day’s high, as index heavyweights rebounded.

It said JG Summit, Metrobank, SM Investments and BDO Unibank gained one to two percent after nearing 52-week lows.

Newly-listed PNB Holdings was the day’s top traded stock, ending unchanged at P1.20 per share. It was followed by ICTSI and SM Investments, which rose by 3.95 percent and two percent, respectively, to P920 and P510.

“Near-term tone is mildly improved, with the 5,800 reclaim and broader heavyweight bounce. Key for follow-through is whether ICTSI can sustain foreign demand and the broader market can hold at these levels. Otherwise, the move could remain a technical bounce,” AB Capital Securities said.