SHARES bounced back past the 8,000 level on Tuesday, with investors going bargain hunting after the main index dipped below record territory in previous weeks.
The 30-member Philippine Stock Exchange index (PSEi) recovered from a two-day slump today, gaining 1.44% or 114.65 points to close at 8,047.03.
The all-shares index also climbed 1.2% or 57.79 points to finish at 4,854.46.
“Valuations were likely the main driver of today’s rally since the index is already trading at historic lows in terms of P/E (price/earnings ratio). Technical indicators also point to the index being oversold,” China Bank Securities, Corp. Research Director Garie G. Ouano said in a text message on Tuesday.
Regina Capital Development Corp. Managing Director Luis A. Limlingan also attributed the market’s increase to the performance of global equities on Monday.
“Philippine markets got a boost from US markets making a huge comeback to help it with an early window dressing,” Mr. Limlingan said in a mobile phone message.
Overnight, the Dow Jones Industrial Average jumped 2.84% or 669.40 points to 24,202.60, while the S&P 500 index rallied 2.72% or 70.29 points to 2,658.55. The Nasdaq Composite index, meanwhile, closed 3.26% or 227.88 points higher to 7,220.54.
Fears of a looming trade war between the US and China also started to ease after the Chinese government said it is open to negotiate with the former. The Chinese government said on Monday that it will maintain trade negotiations and ease access to American businesses.
Most Asian indices also ended in positive territory, lifted by the performance of other global markets.
Back home, financials led the day’s gainers, jumping 2.21% or 45.12 points to 2,085.76. Property followed with a 1.98% or 71.47-point uptick to 3,672.72.
Services added 0.92% or 15.36 points to 1,669.35; industrials increased 0.91% or 103.50 points to 11,391.77; holding firms rose 0.81% or 64.51 points to 7,972.11; while mining and oil gained 0.79% or 85.73 points to 10,885.62.
Advancers outpaced decliners, 148 to 64, while 33 issues remained unchanged.
Some 2.92 billion issues switched hands, resulting in a value turnover of P6.55 billion, inching up from Monday’s P6.34-billion turnover.
Foreign investors booked net sales of P712.85 million on Tuesday, slightly higher than the previous session’s net outflow of P708.18 million.
Ayala Land, Inc. was the day’s most actively traded stock, jumping 2.49% to P41.10 each. Metropolitan Bank & Trust Co. gained 3.37% to P85.80, while SM Prime Holdings, Inc. increased 1.92% to P34.50 each.
The local market will suspend its operations on Thursday and Friday in line with the Lenten break. — A.B. Francia