Bargain hunting pushes PSEi up

THE Philippine Stock Exchange index (PSEi) on Tuesday snapped out of its recent string of losses as the index went up 0.12 percent to 6,474.53.

According to Regina Capital Development Corp. Managing Director Luis Limlingan and Rizal Commercial Banking Corp. chief economist Michael Ricafort, bargain hunting ensued after investors witnessed intense sell offs on Monday night in the US markets with the S&P 500 going down 3.88 percent to a fresh low for the year and closing in bear market territory. This, as recession fears grew ahead of this week’s key Federal Reserve Bank’s two-day policy meeting.

Philstocks Financial Inc. senior research analyst Japhet Tantiangco and Union Bank of the Philippines chief economist Ruben Carlo Asuncion noted that this sell-off in the US market the previous trading day manifested earlier on Tuesday, pushing shares to negative territory and attracting bargain hunters.

Meanwhile, Limlingan noted that investors are bracing themselves for the possibility of a larger-than-expected interest rate hike this week in the US after news channel CNBC’s Steve Liesman confirmed on Monday that the Federal Reserve will “likely” consider a 75-basis-point increase, which is greater than the 50-basis-point hike many traders had come to expect.

For Asian markets, trading ended up mixed as Japan went down again by 1.33 percent, China climbed 1.02 percent, South Korea decreased by 0.46 percent, Vietnam increased by 0.27 percent, Indonesia inched up 0.78 percent, Thailand slightly jumped by 0.19 percent and Singapore descended again, this time by 0.97 percent.

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Trading continues to be slow with net value turnover posting P5.47 billion, below the year-to-date average of P6.81 billion. Tantiangco pointed out that for 10 straight days, net value turnover has not been exceeding P5.7 billion, reflecting lukewarm participation amid the lingering uncertainties in the market.

Foreigners were net sellers this Tuesday with net outflows amounting to P1.25 billion.

The conglomerates led the sectors, adding 1.64 percent, while the properties plunged the hardest, cutting 0.96 percent.

Decliners edged advancers 118 to 62 while 44 securities remained unchanged.


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