Bargain hunting lifts PSEi from 10-month low

MANILA, Philippines — After months of decline, the Philippine Stock Exchange (PSE) has managed to reverse its fortunes and climb out of a 10-month slump. The benchmark Philippine Stock Exchange index (PSEi) rose by 1.67 percent, or 95.95 points, to close at 5,825.97 yesterday. It followed the All Shares index, which also rose by 1.11 percent, or 35.49 points, to settle at 3,246.21.

Luis Limlingan of Regina Capital attributed the market's bounce-back to increased bargain hunting, noting that "Market sentiment improved following expectations that local gas prices could decline next week, easing some cost pressures." Limlingan added that investors were further encouraged by reports of a potential deal between the United States and Iran, which could potentially open the Strait of Hormuz and lift the U.S. blockade on Iranian ports.

Across all sectors, stocks performed well, with the services sector leading the charge, up by 3.22 percent, and financials showing a strong performance with a 1.51 percent increase. The overall trading volume reached P8.76 billion, up from P5.09 billion the day before. Advancers outpaced decliners, with 106 to 70, and 65 stocks remained unchanged.

AB Capital Securities reported that the PSEi closed at its highest level of the day, as major index components rebounded. It highlighted that JG Summit, Metrobank, SM Investments, and BDO Unibank each rose by one to two percent after hitting their 52-week lows. PNB Holdings, a newly-listed stock, ended the day unchanged at P1.20 per share, followed by ICTSI and SM Investments, which each gained 3.95 percent and 2 percent, respectively, to reach P920 and P510.

AB Capital Securities stated that the near-term outlook has seen a mild improvement, with the 5,800 level reclaimed and the broader market bouncing back. However, the success of this move depends on whether ICTSI can sustain foreign demand and the broader market can hold at these levels; otherwise, it could just be a technical bounce.