Shares rise on bargain hunting, financial results
PHILIPPINE SHARES rebounded on Tuesday on bargain hunting as more listed companies released their financial reports for 2022 and ahead of the release of the minutes of the US Federal Reserve’s latest policy meeting.
The benchmark Philippine Stock Exchange index (PSEi) went up by 56.84 points or 0.84% to end at 6,800.96 on Tuesday, while the broader all shares index gained 13.86 points or 0.38% to close at 3,621.61.
“Stocks rebounded from key support levels as the 2022 earnings reporting season kicked in. However, volume was thin as traders await the release of the US Fed minutes, which will lay out the Fed’s plan for US monetary policy,” AB Capital Securities, Inc. Vice-President Jovis L. Vistan said in a Viber message.
Mr. Vistan said trading volume was thin as traders remain cautious on the next move of the US central bank.
Minutes of the Fed’s Jan. 31 to Feb. 1 meeting will be released on Wednesday. At that review, the US central bank raised its target interest rate by 25 basis points to a range between 4.5% and 4.75%.
Some Fed officials recently said they would support a bigger rate hike at their March 21-22 meeting following the release of data showing sticky US consumer inflation.
“The local stock market gauge corrected higher after generally better corporate sales and earnings results recently as the economy reopened towards greater normalcy,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
“The local market has rebounded after hitting bottom yesterday, as investors take advantage of oversold levels to buy stocks,” Timson Securities, Inc. Head of Online Trading Marc Kebinson L. Lood said in a Viber message on Tuesday.
Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message that stocks rose as investors bought bargains after the market’s recent decline.
Almost all sectoral indices closed higher on Tuesday except for services, which declined by 16.58 points or 0.97% to 1,683.99.
Meanwhile, financials climbed by 28.49 points or 1.57% to 1,840.24; holding firms went up by 83.20 points or 1.28% to 6,540.54; mining and oil added 137.65 points or 1.24% to end at 11,228.63; property gained 17.59 points or 0.59% to 2,962.19; and industrials rose by 11.75 points or 0.12% to end the session at 9,738.29.
Value turnover went up to P3.52 billion on Tuesday with 611.20 million shares changing hands from the P3.3 billion with 483.44 million issues traded on Monday.
Decliners outnumbered advancers, 94 versus 79, while 50 names closed unchanged.
Net foreign selling went up to P150.30 million on Tuesday from P43.79 million on Monday.
AB Capital Securities’ Mr. Vistan placed the PSEi’s immediate support at 6,740 and resistance at 6,840. — A.E.O. Jose
