PSEi seen rising on bargain hunt
The Philippine Stock Exchange index (PSEi) may find some reprieve this week after it fell below the 6,000 level as investors hunt for cheap stocks.
Ron Acoba, chief investment strategist at Trading Edge Consultancy, said in a message to the Inquirer that the local bourse was expected to open in the green as “trading normalizes following last Friday’s MSCI rebalancing.”
Acoba expects that the “index issues that were heavily sold down on the close” last trading would “rally as they all closed at the bid side with wide spreads.”
In particular, Acoba was referring to Bloomberry Resorts Corp., which dropped by 8.86 percent; Converge ICT Solutions Inc., down 8.29 percent; SM Prime Holdings Inc., down 7.28 percent; and Alliance Global Group Inc., down 6.5 percent.
Sell-off
Acoba also noted that many investors sold off their positions in JG Summit Holdings, Monde Nissin Corp., Bank of the Philippine Islands, Ayala Land Inc., SM Investments Corp., Ayala Corp., Jollibee Foods Corp., Metropolitan Bank & Trust Co. and PLDT Inc.
On Friday, the benchmark PSEi fell by 2.06 percent or 126.12 points to close at 5,997.97 while the broader All-Shares index dropped 1.83 percent or 67.07 points to settle at 3,588.12.
Apart from a portfolio rebalancing, the local bourse also took cues from Wall Street in the past week.
“US equities also fell as [United States President Donald] Trump reaffirmed tariffs on Canada and Mexico, while jobless claims surged to 242,000, exceeding forecasts of 225,000,” said Luis Limlingan, head of sales at Regina Capital Development.
