Bargain hunting props up stocks

MANILA, Philippines — The local stock market kicked off the week on a positive note as investors continued to take advantage of relatively cheaper valuations.

The benchmark Philippine Stock Exchange index (PSEi) advanced by 0.74 percent or 42.19 points to end yesterday’s session at 5,743.18.

The broader All Shares index also improved by 0.35 percent or 11.26 points, settling at 3,203.11.

Luis Limlingan of Regina Capital said the PSEi ended higher as bargain hunting continued from last week’s rebound.

However, Limlingan said the market sentiment still looked fragile, with the index hovering around the 5,700 level amid a lack of sustained positive catalysts, as selective buying still prevails across the broader market.

“Continued geopolitical uncertainty and lingering macroeconomic risks may weigh on investor confidence and limit the index’s recovery in the near term,” he said.

Sectoral gauges were a mixed bag, with services posting the largest gain at 1.97 percent, while financials took the biggest hit with a 1.07-percent drop.

Total value turnover stood at P6.19 billion.

Advancers crushed decliners, 103 to 87, while 55 issues were unchanged.

ICTSI was the session’s top traded stock, rising by 2.91 percent to P884 per share. It was followed by Metrobank, which fell by 3.94 percent to P58.50, and Meralco, which grew by 0.69 percent to P440.

AB Capital Securities said the PSEi held above 5,700, but gains were entirely ICTSI-driven.

“ICTSI’s stronger gross foreign buying lends slightly more credibility to the move. Still, ex-ICTSI PSEi was flat, while local participation remained subdued and overall net foreign flows stayed negative,” it said.

AB Capital Securities said 5,700 is near-term support, while 5,770 is the resistance and 5,580 as the major support.