PSEi climbs above 6,100 on bargain hunting
Philippine stocks extended their gains on Friday as bargain hunting and improving macroeconomic sentiment kept investors in buying mode.
The benchmark Philippine Stock Exchange index (PSEi) rose 1.02 percent or 62.31 points to close at 6,188.03.
The broader market also advanced as optimism over easing inflation pressures and the Philippines’ newly attained upper-middle income status boosted sentiment.
According to Philstocks Financial Inc., investors continued to pick up beaten-down stocks following recent positive developments in the local and global economy.
“Investors continued to add positions as market conditions appeared less volatile. Macroeconomic developments from the previous day also continued to influence investor reaction and positioning,” Luis Limlingan, head of sales at Regina Capital Development Corp., said.
Among the factors supporting the market was the decline in global oil prices, which could ease inflationary pressures and improve the outlook for consumer spending and corporate earnings.
Despite the rally, trading activity remained subdued.
Net value turnover reached only P3.94 billion, indicating that many investors remained on the sidelines despite the improving market mood.
Foreign investors nonetheless provided support to the market, ending the session as net buyers with inflows amounting to P139.32 million.
Sectoral performance was largely positive, with only the industrial index ending in negative territory after slipping 0.05 percent.
Mining and oil stocks led the advance, climbing 4.38 percent. The rest of the sectoral gauges also finished in the green.
