PSEi claws back to 6,000 mark on bargain hunting
Positive results from the government’s investigation into corruption behind controversial flood control projects may be the market’s only savior after dipping to a six-month low, according to the operator of the local bourse.
Philippine Stock Exchange (PSE) president and CEO Ramon Monzon told reporters on Wednesday that the market’s “very bad” performance was due to prevailing investor sentiment.
“The market’s No. 1 ally is confidence,” Monzon said on the sidelines of the Shareholders’ Association of the Philippines’ digital library launch.
What could trigger the benchmark index’s climb, Monzon noted, would be “very positive results” from Congress’ probe into anomalous flood control projects.
The Philippine Stock Exchange Index (PSEi) managed to snap its seven-day losing streak and reclaim 6,000 on Wednesday, mostly because of bargain hunters taking advantage of cheap prices.
By the end of the session, the PSEi surged by 1.22 percent, or 72.57 points, to close at 6,026.03.
Likewise, the broader All Shares Index added 0.93 percent, or 33.83 points, to end at 3,654.62.
A total of 2.46 billion shares worth P6.8 billion changed hands, stock exchange data showed.
Apart from bargain hunting, the index was also able to break free from its losing streak because of expectations that September inflation remained within the government’s target range, said Japhet Tantiangco, research head at Philstocks Financial Inc.
The PSEi recently slipped below 6,000 as investors took cover amid mounting corruption allegations involving high-ranking government officials.
