Investors went on extended bargain hunting on Tuesday, lifting the benchmark PSEi to a five-month high at the 7,400 level on the back of expectations that the economy turned out well in the first quarter of the year.
“It’s just [that the]market is anticipating a good economic improvement. Technical, medium-term is consolidating well. Nothing on site seems to be negative. Market should improve,” Summit Securities Inc. President Harry Liu told The Manila Times.
The performance of US markets also helped improve investor sentiment, said Luis Limlingan, business development head at Regina Capital Development Corp
The PSEi jumped by 1.43 percent or 104.84 points to close at 7,446.49, while the broader All Shares rose 1.07 percent or 47.14 points to 4,460.56.
US stocks overcame broad morning losses to close narrowly lower even as “certain reflation trades unwound” on the back of weak auto sales numbers and softening manufacturing data, Limlingan noted.
“Markit’s manufacturing PMI (Purchasing Managers’ Index) for March indicated that US business conditions continued to improve across the sector despite the data printing at the weakest level for six months,” he said.
“Markit’s final US Manufacturing Purchasing Managers’ Index fell to 53.3 from 54.2 in February. The loss of momentum reflected softer rates of output and new order growth, alongside a slower rise in payroll numbers,” he said. Market estimates placed the index at 53.5.
The Philippine PMI rose marginally to 53.8 in March, a slight improvement from 53.6 in February, he added.
“The latest reading points to further strengthening in the rate of expansion in the country’s manufacturing, as growth is being driven by domestic demand. This stems mostly from buoyant consumers and public infrastructure spending,” Limlingan said.
All sectoral indices traded in positive territory, with the Property index leading the gain at 2.43 percent.
Among the most actively traded shares were Ayala Corp., SM Prime Holdings Inc., BDO Unibank Inc., PLDT Inc., Bank of the Philippine Islands, Metro Pacific Investments Corp., Globe Telecom, Inc., Universal Robina Corp., SM Investments Corp. and International Container Terminal Services Inc.