PHILIPPINE STOCKS continued to post gains on Tuesday on bargain hunting ahead of third- quarter earnings season and with rate hike concerns already priced in.
The benchmark Philippine Stock Exchange index (PSEi) went up by 158.31 points or 2.65% to close at 6,128.64 on Tuesday, while the broader all shares gained 54.88 points or 1.71% to finish at 3,253.51.
“Philippine stocks rallied today as bargain hunters accumulated stocks ahead of the third- quarter reporting season. Monetary policy concerns are priced in already and now attention will shift to how the listed firms have performed and their outlook in the midst of a difficult business environment,” AB Capital Securities, Inc. Vice-President Jovis L. Vistan said in a Viber message.
“Despite all the noise regarding rates and talks of recession, it still boils down to how resilient corporate earnings are,” Mr. Vistan said.
Timson Securities, Inc. Head of Online Trading Marc Kebinson L. Lood said the PSEi closed higher following Wall Street’s rally overnight, which was driven by strong earnings from major US banks.
“The local market extends its five-day rally, supported by foreign buyers, as the US earnings season begins to ramp up. Big banks in the United States outperform earnings expectations due to higher-than-anticipated gains in interest income as a result of the US Federal Reserve raising interest rates,” Mr. Lood said in a Viber message.
Wall Street jumped on Monday amid solid bank earnings. The Dow Jones Industrial Average rose 550.99 points or 1.86% to 30,185.82; the S&P 500 gained 94.88 points or 2.65% to 3,677.95; and the Nasdaq Composite added 354.41 points or 3.43% to 10,675.80.
Mr. Lood said investors are also optimistic that higher interest rates likewise boosted the third quarter earnings of local lenders, which would be positive for the index.
All sectoral indices closed higher on Tuesday. Property jumped 109.07 points or 4.2% to 2,706.27; financials rose by 41.70 points or 2.77% to 1,544.01; holding firms went up by 128.28 or 2.22% to 5,891.82; services climbed by 34.05 points or 2.22% to 1,563.53; mining and oil added 101.88 points or 0.95% to close at 10,753.08; and industrials gained 61.14 points or 0.7% to end at 8,754.59.
Value turnover declined to P4.82 billion on Tuesday with 351.70 million shares changing hands from the P6.64 billion with 542.89 million issues traded on Monday.
Advancers outnumbered decliners, 109 versus 73, while 52 names closed unchanged on Tuesday.
Net foreign buying stood at P752.76 million on Tuesday, a reversal of the P36.51 million in net selling seen on Monday.
AB Capital Securities’ Mr. Vistan placed the PSEi’s support at 5,700 and resistance at 6,150. — A.E.O. Jose