PSEi rebounds on bargain hunting

Local stocks bounced back on Wednesday after dropping for three straight trading days, as investors went on a shopping spree for bargains.

The Philippine Stock Exchange index (PSEi) went up by 1.51 percent, or 84.95 points, to close at 5,714.02.

The broader All Shares Index also recovered by 0.96 percent, or 33.26 points, to 3,498.87.

Almost all major sectors recorded gains, with the services and financials leading. Holding firms, on the other hand, dipped by just 0.06 percent.

“PSEi rebounded today as investors engaged in bargain hunting after several days of heavy selling,” said Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp.

This, despite the local currency hitting 59.17 against the US dollar, a development “reflecting continued external pressure,” Limlingan said.

“Overall, sentiment improved slightly as traders looked for short-term gains amid oversold market conditions,” he added.

Trading remained tepid with net value turnover at P5.31 billion.

“This reflects the still low confidence towards the local economy amid recent data and the lack of fresh leads,” said Philstocks financial research manager Japhet Tantiangco.

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Michael Ricafort, chief economist at Rizal Commercial Banking Corp., also said the index’s finish was “still among the lowest in more than 5 years.”

On Tuesday, the local bourse sank to a fresh five-year low after closing at 5,629.07 as investors remained wary following disappointing government data.

“For the index to see a more sustainable rebound, it must establish a base in the form of a sideways consolidation first. The process of which will take time,” said Ron Acoba, chief investment strategist at Trading Edge Consultancy.

The market ended with 102 gainers, 86 decliners, and 50 unchanged.