PSEi rebounds as investors snap up bargains
Philippine stocks snapped a three-session losing streak on Tuesday as investors bought battered shares, drawing support from a recovery in regional markets despite the peso’s slide past P64 against the dollar.
The benchmark Philippine Stock Exchange Index (PSEi) climbed 120.01 points, or 2.13 percent, to close at 5,761.19.
Luis Limlingan, head of sales at Regina Capital Development Corp., attributed the advance mainly to bargain hunting following the recent selloff.
“Trading activity may also have been influenced by WisdomTree’s portfolio rebalancing, which likely drove some stock-specific movements,” Limlingan said.
“However, sentiment is expected to remain cautious in the coming sessions after the peso touched the P64-per-dollar level, raising concerns about imported inflation, higher corporate costs and potential earnings pressure that could limit further gains in the local bourse,” he added.
The recovery followed Monday’s 1.53-percent decline, which dragged the PSEi to 5,641.18.
Toby Allan Arce, head of sales trading at Globalinks Securities and Stocks Inc., said stronger Asian markets helped revive investors’ appetite for risk, with renewed interest in artificial intelligence investments supporting technology shares.
A recovery in Wall Street technology and semiconductor stocks also provided support ahead of major US corporate earnings reports, Arce added.
More than 1.122 billion shares worth over P9.52 billion changed hands.
Advancers outnumbered decliners, 104 to 66, while 76 issues were unchanged.
Arce described Tuesday’s advance as a relief rally. A sustained recovery would depend on continued buying and foreign participation as investors reassess the country’s economic outlook.
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