PSEi returns to 5,900 level on buying momentum

Philippine stocks rallied to the 5,900 level on sustained buying momentum as investors continued to pick up bargains and as market sentiment improved.

The Philippine Stock Exchange index (PSEi) jumped by 1.95% or 113.37 points to close at 5,912.69, while the broader all shares index went up by 1.41% or 46.32 points to end at 3,331.88.

This was the PSEi’s best single-day performance since April 8, when it rose by 2.21% or 132.04 points to finish at 6,089.91.

“The local market extended its rally as investors continued their bargain hunting. The market also cheered the significant rollback in fuel prices today as it would help in the country’s inflation scenario. Finally, the government’s move to create a strategic petroleum reserve program helped in today’s session,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

The rollback in fuel prices this week came after five consecutive weeks of hike in gasoline prices and a second week for diesel.

Energy Secretary Sharon S. Garin also said that the government is working on the establishment of a strategic petroleum reserve program, which includes building new stockpiling facilities.

The Philippines is vulnerable to the Middle East conflict as it depends heavily on the region for its oil imports, raising concerns over energy security and higher fuel costs.

“The Philippine market ended in the green as investors shifted back into buying mode, supported by continued bargain hunting that helped reclaim the 5,900 level. The peso’s appreciation against the US dollar further lifted sentiment and underpinned selective inflows into equities,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

On Tuesday, the peso rose by 7.10 centavos to close at PHP 61.675 against the greenback from its PHP 61.746 finish on Monday, Bankers Association of the Philippines data showed.

All sector indices closed in the green on Tuesday. Services surged by 4.84% or 140.11 points to 3,031.38; mining and oil increased by 2.77% or 491.30 points to 18,192.61; industrials went up by 1.09% or 90.98 points to 8,428.07; holding firms climbed by 0.69% or 30.10 points to 4,374.88; property rose by 0.49% or 9.21 points to 1,870.88; and financials advanced by 0.16% or 2.99 points to 1,791.91.

Advancers outnumbered decliners, 98 to 79, while 60 names were unchanged.

“International Container Terminal Services, Inc. was the day’s index leader, jumping 6.41% to PHP 830. Century Pacific Food, Inc. was the main index laggard, falling 4.76% to PHP 25,” Mr. Tantiangco said.

Value turnover dropped to PHP 6.79 billion on Tuesday with 638.23 million shares traded from the PHP 8.50 billion with 564.54 million issues that changed hands on Monday.

Net foreign buying was at PHP 628.73 million on Tuesday, a turnaround from the PHP 1.13 billion in net selling on Monday. — Alexandria Grace C. Magno