Philippine stocks rebound on bargain hunting

Philippine stocks recovered on Thursday, with buyers stepping in late in the trading session to take advantage of lower share prices.

The benchmark Philippine Stock Exchange index (PSEi) rose by 0.38% or 23.09 points to close at 6,053.96, while the broader all-share index climbed 0.28% or 10.20 points to 3,637.58.

“The index closed in positive territory after bargain hunting kicked in when the market touched an intraday low of 6,006.60,” AP Securities, Inc. said in a market note.

The PSEi opened Thursday’s session at 6,024.51, slightly lower than Wednesday’s close of 6,030.87. It hit an intraday low of 6,006.60, but buying helped the index recoup its losses to close nearer to its best showing for the session, which was logged at 6,055.75.

“The Philippine market went up, driven by late bargain hunting toward the end of the trading day as investors sought opportunities after recent declines. However, overall sentiment remained cautious as the peso continued to weaken against the US dollar,” Luis A. Limlingan head of sales at Regina Capital Development Corp. said in a Viber message.

The peso plunged by 20 centavos to close at PHP 58.61 against the dollar on Thursday from Wednesday’s finish of PHP 58.41, Bankers Association of the Philippines data showed. This was a fresh near nine-month low for the local unit.

Sectoral indices closed mixed. Financials dropped by 0.56% or 11.26 points to 1,999.66; holding firms retreated by 0.12% or 6.30 points to 4,870.87; and property decreased by 0.09% or 2.21 points to 2,226.43.

Meanwhile, services jumped by 1.71% or 39.30 points to 2,330.54; mining and oil rose by 1.26% or 167.82 points to 13,446.31; and industrials climbed by 0.52% or 46.54 points to 8,925.86.

Decliners narrowly outnumbered advancers, 99 to 92, while 68 names closed unchanged.

Value turnover declined to PHP 4.80 billion with 1.42 billion shares traded on Thursday from Wednesday’s PHP10.81 billion with 12.06 billion shares changing hands.

Net foreign buying was PHP 5.43 million on Thursday versus the PHP 104.43 million in net selling recorded on Wednesday.

Meanwhile, Asian stocks fell for a second day on Thursday as lackluster earnings from tech megacaps deepened a selloff on Wall Street, while US sanctions against Russia and possible new export controls on China revived geopolitical worries, Reuters reported.

MSCI’s broadest index of Asia-Pacific shares outside Japan was last off 0.4%, while Japan’s Nikkei 225 sank 1.5%.

Chinese stocks fell as much as 1.1% after sources said the White House is considering a plan to curb an array of software-powered exports to China to retaliate against Beijing’s latest round of rare earth export restrictions.

Global markets are easing off record highs as corporate earnings season kicks off and investors take profits. While results or outlooks from megacaps have disappointed investors, most of the companies that have reported so far have beaten estimates. — Alexandria Grace C. Magno with Reuters