PSEi returns to 5,900 on bargain hunting

The Philippine Stock Exchange Index (PSEi) bounced back on Tuesday as bargain hunting lifted the benchmark back to the 5,900 level.

The PSEi rose 1.35 percent or 79.45 points to close at 5,948.94.

Philstocks Financial research manager Japhet Tantiangco said the uptick came as investors picked up beaten-down shares. This followed reports that the government is seeking talks with Iran to ensure safe passage of Philippine-bound vessels through the Strait of Hormuz.

Tantiangco added that the news helped ease concerns over potential supply disruptions, prompting investors to re-enter the market.

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said investors took advantage of lower valuations following recent market weakness, lifting overall sentiment.

“Cautious optimism was also fueled by reports that US President Donald Trump signaled willingness to end the Iran conflict without requiring the reopening of the Strait of Hormuz,” Limlingan said

Trading activity was strong, with net value turnover reaching P8.77 billion.

Despite the rally, foreign investors remained cautious, ending the session as net sellers with outflows amounting to P712.33 million.

Most sectoral indices closed higher as only the services index finished in the red, down 0.43 percent.

Mining and oil stocks led the gains, climbing 2.53 percent, as the broader market showed strength.

Market breadth was positive as advancing stocks outpaced decliners, 124 to 79.

Century Pacific Food Inc. emerged as the top index gainer, jumping 5.42 percent to P35.00.