PSEi rebounds on bargain hunting

Philippine stocks rebounded on Wednesday as investors snapped up bargains following the previous session’s sell-off, while easing tensions in the Middle East helped improve market sentiment.

The benchmark Philippine Stock Exchange Index (PSEi) climbed 0.53 percent or 32.09 points to close at 6,069.26.

Philstocks Financial Inc. said investors returned to beaten-down counters after Tuesday’s decline, while optimism over ongoing negotiations between the United States and Iran — as well as broader diplomatic efforts in the region — helped push oil prices lower and support risk appetite.

“Market sentiment was further supported by optimism over US-Iran negotiations and regional diplomatic efforts, pushing oil prices lower,” the brokerage said.

Trading activity, however, remained subdued.

“Market participation remained subdued as investors largely stayed on the sidelines, reflecting the lack of fresh positive catalysts from both the US and the local front. With no significant developments to drive sentiment, trading was characterized by cautious positioning and selective buying,” said Ron Acoba, chief investment strategist at Trading Edge.

Net value turnover stood at P3.94 billion, below the market’s usual pace, suggesting investors were still treading cautiously despite the recovery. Foreign investors also remained on the sidelines, ending the session as net sellers with outflows amounting to P79.59 million.

Sectoral performance was mixed, with financials leading the gains after climbing 0.93 percent. Mining and oil stocks, meanwhile, were the biggest losers, dropping 1.44 percent.

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