PSEi rebounds to 5,705 on bargain hunt

Philippine stocks recovered on Thursday as investors picked up shares after the previous day’s decline, with gains on Wall Street also helping lift sentiment.

The benchmark Philippine Stock Exchange Index (PSEi) climbed 0.92 percent, or 52.03 points, to close at 5,705.58.

The broader All Shares index added 0.38 percent.

Philstocks Financial Inc. attributed the rebound to bargain hunting.

The brokerage said positive signals from Wall Street following the US Federal Reserve’s decision to keep its policy rate range unchanged also supported local trading.

Luis Limlingan, head of sales at Regina Capital Development Corp., said the Fed’s decision to keep interest rates unchanged also offered short-term relief to Philippine equities by easing some concerns over further monetary tightening.

“However, persistent domestic inflation and currency pressures continue to pose risks to the market outlook,” Limlingan said.

“While these developments supported the market’s recovery, investors are likely to remain cautious amid ongoing macroeconomic uncertainties and the potential impact on capital flows and corporate earnings,” he added.

Participation, however, remained thin. Net value turnover stood at P3.3 billion, which Philstocks said suggested weak conviction behind the market’s advance.

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Foreign investors also continued to pull funds out of local equities, recording net outflows of P100.69 million despite the index’s recovery.

Sectoral indices ended mixed. Services led the gainers with a 1.91-percent increase. Mining and oil posted the steepest decline at 0.93 percent.

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