PSEi rebounds after strong corporate earnings
By Sheldeen Joy Talavera, Reporter
PHILIPPINE shares rebounded on Wednesday after two straight days of decline as strong corporate earnings lifted investor sentiment.
The bellwether Philippine Stock Exchange index (PSEi) advanced 1.33% or 80.8 points to close at 6,144.96. The broader all-share index gained 0.77% or 27.96 points to 3,668.41.
“The local bourse rebounded… as investors seized buying opportunities after two consecutive days of decline,” Claire T. Alviar, research analyst at Philstocks Financial, Inc., said in a Viber message. “Optimism was further fueled by corporate earnings results, which contributed to the market’s positive sentiment.”
Juan Paolo E. Colet, managing director at China Bank Capital Corp., said the index rose “on the back of generally positive corporate earnings results and fresh bargain hunting.”
“While today’s gains reflect some renewed optimism, the PSEi’s momentum will likely hinge on how these upcoming releases and earnings reports shape expectations for domestic growth and policy direction in the near term,” Jayniel Carl S. Manuel, an equity trader at Seedbed Securities, Inc, said in a Viber message.
Almost all sectoral indexes increased except mining and oil, which fell 1.51% or 124.25 points to 8,076.36.
Financials gained 1.56% or 35.79 points to 2,323.27; while the property index rose 1.45% or 32.17 points to 2,251.08. The industrial index increased 1.29% or 112.93 points to 8,831.74, while holding firms went up by 1.22% or 61.37 points to 5,110.33. Services added 0.32% or 6.39 points to 1,963.02.
Value turnover rose to P5.31 billion involving 467.32 million stocks, from P5.17 billion involving 634.67 million shares a day earlier.
Advancers outnumbered decliners 93 to 85, while 60 were unchanged. Net foreign buying stood at P166.13 million, a turnaround from the P563.8 million in net foreign selling on Tuesday.
Market players would be closely watching the budget balance, money supply and bank lending data for January, Mr. Manuel said.
“These releases will shed light on the government’s fiscal position, liquidity conditions and overall credit growth factors that could influence both the corporate earnings outlook and the peso’s stability against the US dollar,” he added.
