Stocks end 9-day losing run on bargain hunting

Philippine shares rebounded on Wednesday, ending their nine-day losing streak, as investors bought bargains and with sentiment boosted by the International Monetary Fund’s (IMF) improved economic outlook.

The bellwether Philippine Stock Exchange index (PSEi) went up by 0.7% or 45.07 points to end at 6,450.04 on Wednesday, while the broader all shares index climbed by 0.59% or 20.17 points to close at 3,430.02.

“Investors took the opportunity to buy bargains near the 6,400 support level. Adding to the positive sentiment, the International Monetary Fund revised its growth forecast for the Philippine economy to 6.2% for 2024,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

The IMF raised its gross domestic product (GDP) growth forecasts for the Philippines for this year and 2025, based on its latest World Economic Outlook released on Tuesday.

The multilateral lender revised its Philippine growth forecast to 6.2% for this year from 6% previously. This is within the government’s revised 6-7% target.

The economy grew by 5.5% in 2023.

For 2025, the IMF sees GDP expanding by 6.2%, a tad higher than its previous forecast of 6.1% but below the government’s 6.5-7.5% goal.

“Philippine shares finally broke their losing streak as equities found support in the 6,400 level to close 0.7% higher on Wednesday. Overnight, US equities ended mixed, following Fed Chair Powell’s comment that the Fed needs to see more progress on the inflation front before the US central bank is likely to begin cutting rates,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

US Federal Reserve Chair Jerome H. Powell said on Tuesday recent inflation data has not given policymakers enough confidence to ease credit soon, noting that the US central bank may need to keep rates higher for longer than previously thought, Reuters reported.

The Dow Jones Industrial Average rose 63.86 points or 0.17% to 37,798.97; the S&P 500 lost 10.41 points or 0.21% to 5,051.41; and the Nasdaq Composite lost 19.77 points or 0.12% to 15,865.25.

Back home, almost all sectoral indices closed higher, with property being the lone decliner as it dropped by 1.73% or 43.49 points to 2,458.75.

Financials climbed by 2.06% or 40.79 points to 2,014.34; industrials rose by 1.46% or 122.40 points to 8,489.63; mining and oil went up by 0.79% or 65.35 points to 8,263.75; holding firms increased by 0.78% or 46.59 points to 5,977.28; and services inched up by 0.16% or 2.95 points to 1,787.28.

Value turnover fell to P5.89 billion on Wednesday with 595.37 million issues changing hands from the P7 billion with 15.82 billion shares traded on Tuesday.

Advancers beat decliners, 98 against 85, while 53 names were unchanged.

Net foreign selling decreased to PHP 521.52 million on Wednesday from PHP 1.19 billion on Tuesday. — R.M.D. Ochave with Reuters