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Bargain hunt lifts PSEi back past 7,600 mark

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PHILIPPINE EQUITIES on Friday climbed overall for the second straight day past the 7,600 mark last seen Tuesday, with bargain-hunting providing some lift as June began.

The Philippine Stock Exchange index (PSEi) gained 133.09 points or 1.77% to finish 7,630.26, while the all-shares index added 50.43 points or 1.09% to 4,638.72. The benchmark index, however, still slipped for a third straight week by 0.23%.

Reuters reported that Wall Street retreated — with the Dow Jones Industrial Average, S&P 500 Index and the Nasdaq Composite Index dropping 1.02% to 24,415.84, 0.69% to 2,705.27 and 0.27% to 7,442.117, respectively — as Canada and Mexico retaliated on Thursday after the US imposed tariffs on steel and aluminum imports while the European Union prepared its own reprisals, reviving fears of a brewing global trade war.

Asia was a mixed bag, with Japan’s Nikkei Index, the Shanghai SE Composite Index and the blue-chip Shanghai-Shenzhen CSI 300 slipping by 0.14% to 22,171.35, 0.65% to 3,075.463 and by 0.84% to 3,770.59, respectively, while Hong Kong’s Hang Seng Index and the MSCI AC Asia Pacific edged up by 0.08% to 30,492.91 and by 0.91% to 172.17, respectively.

“Investors turned to the Philippines for bargain-hunting after a month that saw the index slide more than four percent for the month,” Luis A. Limlingan, head of sales at Regina Capital Development Corp, said in a mobile phone message.

“While other regions seemed more risky due to volatility, the Philippines was viewed as a safe haven.

“The Philippine market started the month of June on a positive note due to likely bargain hunting,” RCBC Securities, Inc. said in a Stock Market Weekend Recap prepared by John Paolo Ayson.

He noted that the benchmark index fell by 2.33% on Wednesday, “breaking two support levels, including the critical 7,500”, but that “bargain hunters came in during the last two trading sessions, lifting the PSEi above 7,600 by Friday, almost back to where it came from”.

Four of the six sectoral indices gained: holding firms by 234.07 points or 3.19% to close 7,563.6, financials by 23.1 points or 1.23% to 1,889.76, industrials by 96.26 points or 0.89% to 10,854.17 and property by 22.88 points or 0.6% to 3,778.18.

The remaining two subindices sank: mining and oil by 80.13 points or 0.8% to 9,941.47 and services by 9.55 points or 0.64% to 1,471.76.

Friday saw 101 stocks advancing and 89 others declining, while 46 steadied.

Friday’s list of 20 most active stocks saw 16 issues gaining against three that lost, besides PLDT, Inc. whose price steadied at P1,295 apiece.

Leading stocks that gained were led by the likes of Aboitiz Equity Ventures, Inc.; SM Investments Corp.; Bank of the Philippine Islands; Manila Electric Co.; Jollibee Foods Corp. and Ayala Corp. whose prices increased by 9.00% to P63 apiece, 4.44% to P906.50, 4.21% to P99, 3.72% to P334.80, 3.58% to P283.80 and 2.13% to P960 each, respectively.

Ending Friday down on the same list were Bloomberry Resorts Corp.; International Container Terminal Services, Inc. and Security Bank Corp. whose prices shed 4.07% to P10.36 apiece, 1.36% to P83.35 and by 0.51% to P194 each, respectively.

Trading volume thinned to 625.151 million shares worth P5.558 billion from Thursday’s 820.139 million shares worth P17.235 billion, while net foreign selling grew by 56% to P303.848 million on Friday from Thursday’s P194.427 million. — with a quote from PPCM