PSEi rebounds on bargain hunting, BSP remarks

Philippine stocks bounced back on Wednesday as bargain hunting emerged after the previous session’s decline, while investors took comfort from signals that the Bangko Sentral ng Pilipinas (BSP) was unlikely to aggressively tighten monetary policy.

The benchmark Philippine Stock Exchange Index (PSEi) climbed 0.78 percent or 49.01 points to close at 6,353.04.

Philstocks Financial Inc. said investors also digested remarks from BSP Governor Eli Remolona Jr., who indicated there was only a small chance that the central bank would pursue an aggressive policy tightening path.

Still, market participation remained cautious as investors awaited the United States Federal Reserve’s policy decision and monitored geopolitical tensions following Iran’s surprise attack against the United States.

Luis Limlingan, head of sales at Regina Capital Development Corp., said bargain hunting in blue-chip stocks ahead of the second-quarter earnings season also lifted the benchmark index.

Potential recovery

“Optimism over a potential second-half economic recovery further underpinned market sentiment despite lingering external risks,” Limlingan said.

Trading stayed below the year’s average, with net value turnover reaching P6.03 billion.

Foreign investors provided support, ending the session as net buyers with P657.58 million in net inflows, helping lift the local bourse.

Sectoral performance was broadly positive. Conglomerates led the gains, advancing 2.72 percent. Miners were the lone decliner, slipping 0.73 percent.

Aboitiz Equity Ventures Inc. emerged as the day’s top index performer, jumping 6.73 percent to P36.50.

Converge ICT Solutions Inc. was the session’s biggest laggard, falling 1.87 percent to P10.52.

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