The stock market bounced back toward the close of Tuesday’s trade from an early session decline in what analysts attributed to positive reaction to the Supreme Court’s ruling allowing Senator Grace Poe to run as presidential candidate in the May elections.
The benchmark Philippine Stock Exchange index (PSEi) reversed a 0.73 percent fall in the morning session and gained a slight 0.33 percent or 22.82 points to finish at 6,915.51.
The All Shares index closed up 0.23 percent or 9.19 points at 4,004.43.
Alexander Adrian Tiu, senior analyst at AB Capital Securities Inc. said the market recovered from the morning’s decline after the Supreme Court voted in favor of Grace Poe on cases seeking her legal disqualification on grounds of her citizenship and Philippine residency.
“The market recovered after it went down during the morning trading. We actually attribute it [recovery]to the SC’s ruling that Grace Poe is qualified to run,” Tiu said.
In the morning session, the market dropped 0.73 percent due to China’s February trade performance, which was much worse than economists had expected, Tiu said.
“China is the world’s proxy for global economic growth and demand. Thus, any negative economic data from China is a big deal,” he said.
The SC en banc on Tuesday afternoon voted 9-6 on Poe’s case, reversing the decision of the Commission on Elections to cancel Poe’s certificate of candidacy.
Tiu noted that the High Court’s decision was viewed not only by local investors but also by foreign investors as “very good for the economy.”
“Investors in general, including foreign investors want continuity of all the reforms that the incumbent [Aquino] administration has started. Thus, the SC’s ruling is actually considered good for the market,” he explained.
Meanwhile, Jun Calaycay, research and marketing head at A&A Securities Inc. said the local bourse’s initial performance was also weighed down by a 1.1 percent contraction in Japan’s reported gross domestic product.
“There is enough body of evidence to convince investors to buy on dips and thus lend support. Therefore, it would lend support to the market at above 6,770. Alternatively, external uncertainties keep investors sensitive enough for them to immediately book profits, so this keeps the market within a trading range,” Calaycay said.
Total value turnover reached P6.378 billion, with losers outnumbering winners, 96 to 86, while 43 issues remained unchanged.
Sub-indices were mixed, with property firms declining the most by 0.46 percent, while the mining and oil sector posted the highest increase of 2.51 percent.