Bargain-hunting fueled Philippine stocks’ rise on Tuesday, though trading mirrored investor caution given downward pressure from the regional markets’ retreat in line with Wall Street’s overnight fall.
The Philippine Stock Exchange index (PSEi) inched up 0.21 percent or 16.65 points to close at 7,794.55, while the All Shares index added 0.15 percent or 6.62 points to 4,494.10.
Going against currently weak sentiment in the US markets, local “bargain hunters have been active lately, seeing current price levels as a chance to get in cheap,” Bryan Gomez, Citisecurities co-head of investments, said in a text message.
Indices on Wall Street slumped overnight, with the Dow down 0.47 percent or 85.94 points at 18,105.17; S&P 500 down 0.51 percent or 10.77 points at 2,105.33 and Nasdaq down 0.20 percent or 9.98 points at 4,993.57.
“But we are still cautious of the big picture as global 10-year yields are rising. Rising yields may temporarily be negative to stock prices in the short term,” Gomez added.
Sectoral indices on the PSE ended mixed, with decliners led by financials’ 0.65 percent loss, while advancers were led by the industrial index with a 0.63 percent gain.
Top losers during the session were Bank of the Philippine Islands, Energy Development Corp., Philippine Long Distance Telephone Company, and Semirara Mining and Power Corp., while active gainers were Universal Robina Corp., Bloomberry Resorts Corp., GT Capital Holdings Inc., Alliance Global Group Inc., D&L Industries Inc. and SM Investments Corp.
Total volume thinned to 499.18 million shares, valued at P5.36 billion. Advancers outnumbered decliners by only one at 93 to 92, while 53 issues closed unchanged.
On Monday, the main PSEi added 0.19 percent or 14.69 points to end at 7,777.90, while the wider All Shares dipped 0.007 percent or 0.33 points to 4,487.48.