PSE index rebounds as investors pick up bargains

PSE-Trading-Floor

PHILIPPINE SHARES rose anew on Tuesday as investors went bargain hunting after the market declined in the past two days.

The 30-member Philippine Stock Exchange index rose by 51.18 points or 0.8% to close at 6,446.35 on Tuesday, while the broader all shares index inched up by 25.61 points or 0.65% to end at 3,913.32.

“The index rallied [on Tuesday] on bargain hunting,” AB Capital Securities, Inc. Junior Equity Analyst Lance U. Soledad said in a Viber message.

“Investors took opportunities out of the local bourse’s preceding two straight days of decline,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said a separate Viber message.

“The local bourse also took cues from Wall Street’s overnight rally amid the decline in the US bond yields.”

AAA Southeast Equities, Inc. Research Head Christopher John J. Mangun added the rally was a “technical bounce” after panic selling subsided.

“Fears of surging COVID-19 (coronavirus disease 2019) cases which may lead to an out-of-control situation persist. However, clarity on economic and business restrictions as well as progress on the inoculation may have had a positive effect on the general investor sentiment,” Mr. Mangun said via e-mail.

Most sectoral indices improved on Tuesday, except for mining and oil, which slumped by 31.81 points or 0.38% to 8,239.12; and industrials, which went down by 8.4 points or 0.1% to close at 8,390.21.

Meanwhile, property gained 56.57 points or 1.8% to finish at 3,197.65; financials went up by 16.43 points or 1.18% to 1,404.73; holding firms increased by 17.05 points or 0.26% to 6,512.73; and services rose by 2.26 points or 0.16% to end at 1,414.39.

Value turnover declined to P5.04 billion on Tuesday with P2.3 billion shares switching hands from the P6.29 billion seen on Monday with 2.48 billion issues traded.

Advancers outnumbered decliners, 125 versus 76, while 52 names closed unchanged.

Net foreign selling went down to P690.22 million on Tuesday from the P725.41 million recorded on Monday.

Investors are expected to stay cautious amid continued uncertainties due to the country’s COVID-19 situation.

“Investors are on the sidelines and are taking a wait-and-see approach,” Mr. Mangun said. “The PSEi’s support is at 6,200 with resistance at 6,500.”

Meanwhile, AB Capital Securities’ Mr. Soledad expects investors to track the listing of DDMP REIT, Inc. (DDMPR), the real estate investment trust of DoubleDragon Properties Corp.

“[Today] will be [DDMPR]’s listing, so we expect investors to focus more on trading the newly-listed issue,” Mr. Soledad said.

DDMPR adjusted its listing date to March 24 after over 50,000 total investors subscribed to its initial public offering. The company told the stock exchange on Monday that it would need an additional day to complete the lodging of its shares. — Keren Concepcion G. Valmonte