Local stocks extend gains on bargain hunting

SHARES extended their gains on Tuesday as investors picked up bargains following the first round of talks between officials of Russia and Ukraine.

The benchmark Philippine Stock Exchange index (PSEi) rose by 93.60 points or 1.28% to close at 7,404.61 on Tuesday, while the broader all shares went up by 31.96 points or 0.82% to close the session at 3,921.05.

“The index continued to rally today, consistent with some markets across Asia following the first round of talks between Kyiv and Moscow officials, which somehow gave investors a sigh of relief while assessing the current state of the tensions between both countries,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message on Tuesday.

“Bargain shoppers trooped to the local bourse, lifting the PSEi,” online brokerage 2TradeAsia.com said in a report. “Participants cheered G7’s concerted efforts given Russia’s invasion of Ukraine.”

Asian stocks regained some composure on Tuesday as the massive selling that rocked financial markets after Russia’s invasion of Ukraine last week paused for breath, while surging crude prices supported oil exporters in the region, Reuters reported.

Global stock markets have tumbled in recent days following Russia’s invasion of Ukraine and Western sanctions, which include cutting off some of Russia’s banks from the SWIFT financial network and limiting Moscow’s ability to deploy its $630-billion foreign reserves.

High-level talks between Kyiv and Moscow on Monday ended with no agreement except to keep talking, but Asian markets stabilized on signs of no immediate escalation of sanctions.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.42% and Japan’s Nikkei jumped 1.47%.

Back home, majority of sectoral indices ended in the green, except for industrials, which went down 76.65 points or 0.74% to 10,264.62, and property, which fell by 3.13 points or 0.08% to 3,537.66.

Meanwhile, holding firms increased by 231.92 points or 3.36% to 7,127.91; mining and oil gained by 249.96 points or 2.04% to 12,482.70; services climbed by 26.59 points or 1.39% to 1,940.14; and financials advanced by 15.58 points or 0.92% to 1,705.46.

Value turnover decreased to P7.84 billion with 1.01 billion shares changing hands on Tuesday from the P11.61 billion with 2.11 billion issues seen the previous day.

Advancers outnumbered decliners, 135 versus 60, while 49 names closed unchanged.

Foreigners turned sellers on Tuesday with P83.13 million in net outflows from the P202.74 million in net purchases seen on Monday.

Mr. Pangan placed the PSEi’s support at 6,940 this week, with its nearest resistance at 7,510, while 2TradeAsia.com put immediate support at 7,270 and resistance at 7,400-7,450. — L.M.J.C. Jocson with Reuters