Stocks inch higher on bargain hunting after slump
Philippine shares edged higher on Thursday to halt a two-day slump, as players picked up cheap issues after the market’s recent losses despite lingering geopolitical concerns.
The Philippine Stock Exchange index (PSEi) went up by 0.24% or 15.27 points to close at 6,283.12, while the broader all shares index rose by 0.16% or 5.72 points to end at 3,427.07.
“The PSEi ended higher as the market saw bargain hunting following two consecutive sessions of declines. Investors took advantage of lower valuations, leading to renewed buying interest across selected sectors. The rebound reflected improved sentiment as investors selectively accumulated stocks at more attractive price levels,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“The local market bounced back today mainly due to bargain hunting,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco likewise said in a Viber message. “The cautious backdrop is attributed to the downside risks caused by the US-Iran war, including the rise in global prices and the weakening of the peso against the US dollar.”
On Thursday, the peso closed flat at its record low of PHP 61.75 against the dollar, data from the Bankers Association of the Philippines showed.
The US military said on Wednesday it completed its latest round of strikes on Iran at President Donald J. Trump’s direction, for a 12th successive night of American attacks, Reuters reported.
“US forces struck Iranian military targets including maritime capabilities, missile and drone storage facilities, coastal surveillance sites, and air defense assets,” the US Central Command said in a statement.
The latest US strikes lasted five hours, the military said.
Mr. Trump vowed on Wednesday to destroy an Iranian bridge or power plant every time Iran shoots at a ship in the Strait of Hormuz.
Four of the six sectoral indices closed higher on Thursday. Financials rose by 1.19% or 22.86 points to 1,934.26; holding firms increased by 0.42% or 18.49 points to 4,421.81; industrials went up by 0.08% or 7.23 points to 8,478.75; and property climbed by 0.08% or 1.61 points to 1,924.06.
Meanwhile, mining and oil dropped by 1.1% or 175.70 points to 15,737.08, and services went down by 0.43% or 14.81 points to 3,361.63.
Advancers beat decliners, 93 to 85, while 59 names were unchanged.
“Semirara Mining and Power Corp. was the day’s index leader, jumping 5.1% to PHP 22.65. DigiPlus Interactive Corp. was the worst index performer, dropping 3.04% to PHP 9.89,” Mr. Tantiangco said.
Value turnover decreased to PHP 5.23 billion on Thursday with 586.89 million shares traded from the PHP 6.49 billion with 711.22 million issues that changed hands on Wednesday.
Net foreign selling went down to PHP 76.61 million from PHP 655 million previously. — A.G.C. Magno with Reuters
This article originally appeared on bworldonline.com