Shares rebound as investors pick up bargains

PHILIPPINE SHARES ended higher on Wednesday as investors took advantage of lower valuations after the market’s steep decline in the prior session.

The Philippine Stock Exchange index (PSEi) rose by 0.53% or 32.09 points to close at 6,069.26, while the broader all shares index went up by 0.16% or 5.49 points to end at 3,324.78.

“This comes after investors hunted bargains following Tuesday’s sell-off. Market sentiment was further supported by optimism over US-Iran negotiations and regional diplomatic efforts, pushing oil prices lower,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“The PSEi ended higher as the market shifted into bargain hunting mode following (Tuesday’s) decline. Investor sentiment improved as participants picked up select names at attractive levels. The market also tracked the broader regional recovery, supporting a more positive tone,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

On Tuesday, the PSEi sank by 1.56% or 96.24 points to close at 6,037.17.

Asian share markets started the new quarter in a cautious mood on Wednesday as talks between the United States and Iran hit new hurdles, while investors stayed alert for possible Japanese intervention as the yen plumbed fresh 40-year lows, Reuters reported.

Tehran said on Tuesday it would not meet with top US envoys who had flown to the region, with the two sides still far apart on a framework that would fully open the Strait of Hormuz.

MSCI’s broadest index of Asia-Pacific shares outside Japan firmed 0.2%, while Chinese blue chips rose 0.3%.

As for oil, Brent crude was up 0.3% at $73.19, but a world away from its May peak of $126.41, while US crude added 0.4% to $69.74 a barrel.

Back home, sectoral indices ended mixed on Wednesday. Financials rose by 0.92% or 17.19 points to 1,868.03; industrials increased by 0.86% or 72.22 points to 8,398.32; and services went up by 0.71% or 22.65 points to 3,210.65.

Meanwhile, mining and oil declined by 1.44% or 199.64 points to 13,645.21; holding firms dropped by 0.57% or 24.76 points to 4,313.84; and property went down by 0.3% or 5.72 points to 1,857.93.

“Jollibee Foods Corp. was the day’s index leader, jumping 4.09% to P140. DigiPlus Interactive Corp. was the worst index performer, dropping 5.3% to P11.08,” Mr. Tantiangco said.

Decliners outnumbered advancers, 102 to 89, while 61 names were unchanged.

Value turnover went down to P4.63 billion on Wednesday with 544.05 million shares traded from the P6.74 billion with 531.33 million issues that changed hands on Tuesday.

Net foreign selling decreased to P79.59 million from P342.22 million in the previous session. — Alexandria Grace C. Magno with Reuters